Pakistan

Systems Ltd: Pakistan’s best digital story; initiate with a Buy

  • We initiate coverage on SYS with a Buy rating and Dec 2021 TP of PKR685/sh (potential upside of c.50%)

  • We expect 5yr Revenue and EPS CAGR of 23% and 32% resp – has the right mix of services amid surge in global IT spending

  • Globally, comparable companies with similar growth outlook as SYS trade well above 50x forward P/E

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The analyst certifies that the views expressed in the report reflect their personal views about the subject securities. He or she also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations made in this report. He or she further certifies that they do not have any beneficial holding of the specific securities that they have recommendations on in this report.

Valuation Methodology: We use multiple valuation methodologies in arriving at a Target Price including, but not limited to, Discounted Cash Flow (DCF), Dividend Discount Model (DDM) and relative multiples based valuations.

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The Analyst certifies that the views and forecasts expressed in this report accurately reflect their personal views about the subject, securities, or issuers specified herein. In addition, the Analyst certifies that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.

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