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New converged suite could spark fresh demand for the shares
Thursday 07 Dec 2017 Author: Steven Frazer

AIM-quoted Gamma Communications (GAMA:AIM) is close to launching its fully integrated fixed line and mobile for business platform called Connect.

This could reignite investor demand for the shares after a slow run. The consensus target price stands at 700p, versus the 601.5p at which the stock trades on the open market. One analyst calculates the stock to be worth 733p, implying more than 20% upside.

Gamma is a technology-based supplier of communications solutions exclusively to enterprise customers in the UK. Its cloud-based products allow businesses to manage increasingly complex voice, data and communications on-the-go requirements. It also provides best-in-class broadband and ethernet services.

Out-competing both large and small rivals for years, Gamma is a rare telecoms technology business as it is growing much faster than its peer group.

Connect is likely to be targeted initially at an estimated 9.5m mobile users, ‘but this could expand into the 17m fixed line users,’ believe analysts at broker Peel Hunt.

With a strong track record for developing communications solutions we would expect the company to continue developing its suite, creating an increasingly compelling value and service-based proposition.

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