Digital investor relations
EQS (NYSE:EQS) is growing its sales strongly, stimulated by increasing regulation, and progressing in its ambition to become the leading global provider of digital investor relations. It offers a range of products and services, including its cloud-based solution, COCKPIT, which digitally maps the work processes of IR officers, streamlining them for maximum efficiency. Rising recurring and repeatable revenues, as well as continuing international expansion underwrite the top-line growth built into consensus forecasts, with the momentum implying that the valuation could have further upside.
Regulatory drivers
The role of investor relations is increasingly circumscribed by regulation and legislation designed to increase transparency and drive consistency. The recent introduction of the Market Abuse Regulation (July 2016) has increased both the scale and complexity of the compliance burden on companies across Europe, boosting sales of EQS’s INSIDER MANAGER. The consolidation of ARIVA (67% held) technically affected FY16 results, but gives greater benefit in the run-up to the implementation of the PRIIP regulation in January 2018. The impact of MiFID II is likely to be less directly beneficial but adds further layers of compliance that will need to be monitored and recorded – disciplines central to EQS’s various offerings.
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