Research as a Service (RaaS) is initiating coverage of Comms Group Limited (ASX:CCG) with a DCF valuation of $0.16/share against a reference price of $0.068/share.

Comms Group provides a full range of IT and communications services in the highly fragmented MSP/ICT market domestically. Internationally CCG is a niche player in the provision of corporate voice solutions for enterprises with an established, capital-light network particularly strong in the Asia Pacific.

We expect the company to benefit from the solid MSP/ICT growth domestically and to piggyback the growth of market leader Microsoft Teams globally. Comms Group is trading at a 5% EV/EBITDA discount to profitable peers based on FY23 consensus/RaaS forecasts which include the start up costs for but little revenue from the recent Vodafone agreement.

Review the full report here: CCG Comms Group Raa S Initiation Report 2023 03 20