RE: TDW on Marketing Meetings with CEO part 2 ? Our estimates are unchanged. Our model reflects 10% EBITDA
margins in FY14 vs. the 2-yr target of low to mid-teens.
? The long-term potential in different verticals was discussed. Given
the challenges of real-time and connectivity, the telecom market has
arguably the most complex charging systems of any vertical - we think
this is readily transferable to other markets. Redknee has two ongoing
pilots in the energy vertical.
? Target of $4.25 still provides 31% upside. Our target is based on 1.4x
EV/F2014E sales (reflecting the first full year of the acquisition) and
3.0x just the maintenance revenue, which we view