Blue Prism (PRSM:AIM) £12.28

Gain to date: 57.7%

Original buy at 778.5p on 15 July 2021

Speculation is increasing that there will be a bidding war for robotic automation company Blue Prism (PRSM:AIM).

Its shares surged by 32% on 31 August after confirming it was in talks with private equity firms TPG Capital and Vista Equity Partners regarding possible offers for the firm.

Since then, the Financial Times reported that Blue Prism had brought in Qatalyst Partners as financial adviser. It said: ‘The Silicon Valley boutique has a longstanding reputation for shopping tech companies to the highest bidder.’

At the time of writing, TPG and Vista have remained silent, and no details have been revealed as to the terms being discussed.

One of the key attractions we identified for owning Blue Prism shares was the yawning valuation discount that it traded at versus peers. This is still relevant today, despite the subsequent gain in the share price since our July article.

Add in the company’s exposure to a fast-growing industry and installed recurring revenue base and the potential rewards still outweigh the risks.

SHARES SAYS: Anyone who followed our suggestion to buy in July would have made a decent return in a very short time. Readers must decide whether to lock in that profit or hang on in case a bidding war drives the price up further. Shares believes there is more money to be made from sticking with the stock.

‹ Previous2021-09-09Next ›