Analyst Report: Alfalah Securities say Avanceon stock likely to rise due to strong 2017 pipeline and refreshed approach to business
Following a series of analyst briefings earlier this week, Avanceon received a positive outlook report from Alfalah Securities, attached here for your attention.
Along with reference to a strong recent project win with Qatar Rail, the analyst house reference some detail around an expected recurring revenue stream for Avanceon:
“Renewed focus on servicing business to enlarge recurring income: Going forward, the major focus of the company is to increase its share in “Build, Train, Maintain and Improve” (BTMI) service contracts, under which the company will build software for a client, train the client’s employees, maintain the client’s system and work on improving the system for the client. The monthly contracts will help the company in increasing its share in recurring revenues (currently 20-30% of topline) thus stabilizing the earnings going forward.”