Shore Capital sees further upside for Alfa Financial Software
Alfa Financial Software's share price jumped on Thursday after the asset finance tech company impressed with "exceptionally strong" interim results, according to Shore Capital.
Alfa Financial Software Holdings
04 September 2025 14:38:51
Source: Sharecast
In line with a recent trading update, the group delivered 22% organic revenue growth in the first half, compared with Shore Capital's full-year forecast of 13%, which implies a slowdown to just 7% in the second half.
First-half earnings before interest and tax (EBIT) growth of 33% was also tracking ahead of the broker's current full-year estimates.
"While H2 will be impacted by FX headwinds, higher opex and a possible skew towards lower margin revenue lines (software engineering performance unlikely to be repeated), we continue to see upside risk to our top-of-the-range EBIT estimate," Shore Capital said in a research note.
The broker kept a 'buy' rating on the stock, saying it remains a "top pick" with a fair value estimate of 270p, compared with Thursday afternoon's price of 231.5p – up 6.4% on the day.
Regarding Alfa's valuation, the stock continues to trade at a modest premium to historical averages on multiple measures, but Shore Capital reckons "this can be supported by the growth acceleration, improving forecast visibility, and increasing scale".
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