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The silver lining to Iomart’s cloud

The cloud computing group has grown its revenues substantially, but trades on a modest forward PE
January 10, 2019

The commercial opportunity of ‘the cloud’ – storing and accessing data and computer programs over the internet – is huge. Indeed, according to research house Gartner, the cloud market could reach $317bn (£249bn) by 2022 – representing a compound annual growth rate of nearly 17 per cent.

IC TIP: Buy at 325p
Tip style
Speculative
Risk rating
High
Timescale
Long Term
Bull points

Significant market opportunity

Good organic revenue momentum complemented by acquisitions

Strong sales pipeline 

Could attract takeover offers

Bear points

Shares have suffered alongside rivals

Small-scale; could face ‘big tech’ competition

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