Cancom Rises as Analysts confirm Business Growth
Cancom AG surged for a second day after an analyst at Hauck & Aufhaeuser Privatbankiers KGaA said the German software provider may be a takeover target as it sells more cloud applications accessed via the Web.
The shares rose as much as 10 percent today to 20.31 euros, the highest intraday price since August 2000, and traded at that level as of 5:16 p.m. in Frankfurt. That followed a 2.5 percent advance yesterday and gave the Munich-based company a market value of 232.3 million euros ($303 million).
“Cancom is an appealing takeover target especially for companies looking for cloud exposures to German small and medium-sized enterprises,” such as International Business Machines Corp. and Deutsche Telekom AG (DTE)’s T-Systems unit, Tim Wunderlich, an analyst at Hauck & Aufhaeuser, said in a note dated July 10.
Cancoms’s “cloud-related” earnings before interest, taxes, depreciation and amortization may rise by 54 percent a year to 11 million euros by 2015 from 3 million euros in 2012, according to the note. The company’s cloud systems offer “significant cost and time savings” compared with rivals such as Bechtle and Computacenter Plc, Hauck & Aufhaeuser said.
“We have a strong interest to stay independent, and I think our business performance will allow us to do that,” Beate Rosenfeld, a spokewoman for Cancom, said today. “Cloud computing is receiving the attention of the markets. That’s how we explain our rising share price.”
To contact the editor responsible for this story: Angela Cullen at email@example.com