CentralNic (CNIC) sells, registers and trades internet domain names and more recently has moved into providing advertising services for owners of premium domain names. Given online addresses serve as a backbone for digital infrastructure, demand has remained resilient during the recent market turmoil, with more activity than ever being conducted online as a consequence of lockdown. What’s more, by diversifying its business CentralNic is improving its growth prospects and while forecast earnings are relatively small for now, it has found a place in our Ideas Farm broker upgrade table.
IC TIP:
Buy
at
89.5p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
Excellent revenue visibility
Cash generative
Consistent organic growth
Bear points
New client wins are slowing