MailUp : Fidentiis Equities started the coverage of MailUp with a BUY rating at EUR 3.2-3.4 valuation range vs a current market price of EUR 2.56

Key Highlights of MailUp Group by Fidentiis Equities are:

• MailUp revenues increased from EUR 6M in FY13 to EUR 21M in FY16 (both organically and through acquisitions), +52% CAGR in the 3 years;
• Circa 40% of revenues comes from subscription-based services to corporates;
• FY16 EBITDA of EUR 2.4M (3x growth vs. FY15), FY16 Net Income EUR 0.8M;
• MailUp is cash positive (EUR 1.9M 1H17 NFP). After the recent EUR 6M capital increase it is expected to be in the range of EUR 8M;
• MailUp is expected to grow by 17% annually on revenues. EBITDA margin should improve at 17% by 2022E. Net cash position should reach EUR 23M by 2022E assuming no acquisitions;
• MailUp goals: to expand its solutions through acquisitions with a focus on marketing automation and to enlarge geographically its business;
• Stock price is up 47% YTD and is now trading at 34x and 21x '18-'19 PE; '17 FCF yield is 2% based on our estimates. Initiation of coverage has a BUY rating and a DCF-based valuation range of € 3.2-3.4 per share. MailUp trades at a slight discount compared to marketing technology companies on EV/Sales and EV/EBITDA multiples.

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