DAVY VIEW

Datalex yesterday announced a further customer for its TDP platform in SWISS, which is part of the Lufthansa Group and carries 17m passengers per annum. In its IMS in November, Datalex had already flagged an agreement to deploy its platform at a “leading European carrier”; this announcement therefore does not surprise but is very encouraging nonetheless. It further highlights the company’s contract momentum and the attraction of its technology. As a well-regarded revenue manager, signing SWISS will also act as a useful reference customer in further marketing of the product. We believe that both Datalex’s growth (c.20% adjusted EBITDA growth in 2014, c.22% in 2015) and the visibility of its growth are underappreciated by a 11x EV/EBITDA multiple.