Equity Research - Lombard Risk Management Initiation Report

<p>Lombard Risk Management (“LRM” or “the company”) is a UK-based company listed on AIM, operating in the&nbsp;software and computer services business for more than twenty years. LRM focuses on two market segments:</p>

<p>Regulatory Compliance software and Risk Management and Trading software. The company has offices in&nbsp;major international financial centres and serves more than 300 financial organisations including over half of the world’s top 50 banks.</p>

<p>Despite the economic uncertainty still looming over the global markets, LRM’s revenues are showing a strong&nbsp;growth momentum driven by new deal flow in the midst of an active regulatory environment. Notably, several&nbsp;important regulations are expected to become effective by the beginning of or during 2013, providing a positive&nbsp;outlook for LRM. The company is seizing the opportunities in the growing regulatory compliance and risk&nbsp;management markets by boosting its research and development activities and extending its position in the&nbsp;North American market through acquisitions. We expect LRM to continue benefitting from growing regulation-&nbsp;driven demand, international expansion and innovation although increasing competition and an uncertain&nbsp;macroeconomic environment mean that the path to success may not be smooth.</p>

<p>Our valuation, based on a combination of intrinsic DCF-based methods and relative valuation techniques,&nbsp;suggests that LRM’s share should be valued at £0.19. We therefore rate the company a Buy.</p>

• Tweet  
• Facebook  
• LinkedIn  
• Save this article
• Send to  
• Print this page  

• Topics
• Vendor analysis
• Analytics
• Business Intelligence