BM mBank Lowers Target Price for Cyber_Folks S.A. to PLN 209, Maintains "Buy" Recommendation
On April 13, BM mBank analysts revised their target price for Cyber_Folks S.A. (ticker: CBF.WSE) shares to PLN 209 from the previous PLN 224.40, while maintaining a "buy" recommendation. The report was issued with the stock trading at PLN 177, noting a year-to-date decline of over 14%, underperforming the broader market by 26 percentage points.
According to the report, the market's concerns about the impact of AI on traditional software models have contributed to the stock's underperformance. However, analysts argue that Cyber_Folks' business model, which integrates a multi-layered ecosystem of e-commerce support services, is more resilient to AI-related risks compared to traditional SaaS models. This includes reduced exposure to "seat compression," a phenomenon where AI reduces the need for individual software licenses.
Additionally, BM mBank highlighted the strategic importance of Cyber_Folks' acquisition of PrestaShop. The deal significantly expands the company's operational scale, geographic reach, and cross-selling potential to merchants across Western Europe and other international markets, positioning the company for future growth.
The report was prepared as part of the Warsaw Stock Exchange's Analytical Coverage Support Program and authored by Paweł Szpigiel.
Relevance to Cyber_Folks S.A.: This article is relevant as it discusses Cyber_Folks' stock performance, its business model's resilience to AI-related risks, and the strategic impact of its acquisition of PrestaShop, which aligns with the company's focus on e-commerce platforms and digital infrastructure expansion.