Analyst Andrew Wade from Jefferies maintained a Buy rating on Pinewood Technologies (PINE – Research Report) and keeping the price target at p600.00.
Andrew Wade has given his Buy rating due to a combination of factors, primarily driven by Pinewood Technologies’ recent contract win with Volkswagen Group Japan. This new 5-year agreement is expected to significantly expand Pinewood’s customer base by integrating its platform into approximately 350 VW and Audi dealerships across Japan, aligning with the company’s strategic goals.
Although specific details on user numbers or average revenue per user are not provided, the contract is anticipated to contribute substantially to Pinewood’s earnings, similar to previous contracts such as the one with Marshalls. The endorsement from Volkswagen, highlighting Pinewood’s platform as a ‘state of the art software solution,’ further strengthens the company’s market position and potential for share price appreciation, justifying the Buy recommendation.