10 Reasons To Buy Cision, According To William Blair

Cision Ltd CISN, a provider of a workflow tools for the day-to-day operations of communications professions, boasts a competitive advantage within a crowded space and should be bought by investors, according to William Blair.

The Analyst

William Blair's Timothy McHugh initiated coverage of Cision's stock with an Outperform rating.

The Thesis

The bullish case for Cision's stock can be summed up in 10 points, McHugh said in the note:

1. Cision provides a valuable service to clients as it can more effectively and efficiently monitor news and information than any one company can do on its own.
2. Cision's integrated single platform offers an end-to-end media monitoring and analysis solutions.
3. Cision boasts a superior size and scale versus its competitors.
4. The growing social media landscape implies public relations and communication functions are becoming increasingly important for corporations.
5. Cision's platform creates cross-selling opportunities which should result in improved revenue growth over the years.
6. Organic constant currency revenue growth in the fast growing Asia region has been more than 50 percent.
7. At its core Cision is a "fairly predictable company" and it should be easier to model revenue trends moving forward.
8. Ongoing cut costing and synergies will likely result in margin improvements.
9. Cision charges an up-front fee for its subscriptions and should help push free cash flow in excess of adjusted net income.
10. Cision's stock is trading at a discount P/E multiple of 17.5 times versus the information services companies who trade on average at 22 times.

Price Action

Shares of Cision were trading higher by 2.5 percent at $16.67 Wednesday afternoon.

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