Edison issues report on HgT (HGT)

Summary by AI BETAClose X

HgT's preliminary trading update for H126 reveals strong portfolio performance with last-12-month revenue and EBITDA growth of 16% and 19% respectively, at a 34% EBITDA margin, while average net debt to EBITDA decreased to 6.9x. Despite this robust underlying performance, a 5pp negative impact from falling peer multiples, influenced by AI uncertainty in the software sector, led to a Q226 NAV total return of 0.5% and a H126 NAV total return of -4.9%. Consequently, HgT shares are trading at a historically wide 25% discount to NAV, with the report suggesting the company is well-positioned to benefit from AI augmentation in its software portfolio.

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