Cision Shares Are A 'Unique, Underappreciated' Investment Opportunity, Baird Says In Bullish Initiation

Public relations software provider Cision Ltd CISN is an exciting investment prospect on the basis of its ability to show measurable attribution, customer attraction and attractive valuation, according to Baird.

The company went public in June 2017 through a reverse merger with the blank check company Capitol Acquisition Group III.

The Analyst

Analyst Rob Oliver initiated coverage of of Cision with an Outperform and $19 price target.

The Thesis

Cision is a unique opportunity to "own an evolving SaaS story" in which the company is both the innovator and disruptor, Oliver said in a Monday note.

"Cision seeks to leverage its global installed base, strong customer relationships and breadth of offerings to provide a true 'platform' for PR professionals," the analyst said.

If successful, Cision is poised to record high-single to low-double digit revenue growth in out years, Oliver said.

Baird projects the company will deliver roughly $730 million in revenue and EBITDA margins over 35 percent while being helmed by a strong management team and serving a large customer base.

Cision boasts 81,000 global customers and serves 91 of the top 100 global brands, Oliver said.

The valuation is attractive for investors who are willing to wait to see the story evolve, the analyst said.

"We believe the combination of Cision's large installed base of customers, strong brands and management vision coupled with growing need for PR to 'digitally transform' their core processes, together make CISN a unique and underappreciated horizontal GARP investment opportunity."

The Price Action

Cision shares were up more than 1 percent at $15.69 at the time of publication Tuesday.

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Photo courtesy of Cision.

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