Checkpoint Partners Rates Lleida.net a Buy at 3.50 Euros per Share

Core Viewpoint - Checkpoint Partners has issued a Buy recommendation for Lleida.net with a target price of 3.50 euros per share, highlighting it as the most anomalously valued stock in its sector [1]. Valuation and Financial Metrics - Lleida.net is trading at 5.4x EV/EBITDA and 8.0x P/E on a 2026 forward basis, reflecting discounts of 60-70% compared to comparable companies [2]. - The company reported a record EBITDA of 4.05 million euros for 2025, a 25% increase from the previous year, and a pre-tax profit of 1.40 million euros, up 62% from 2024 [6]. Profitability and Growth - Lleida.net's profitability margins are expanding, with a free cash flow yield of 18%, and its capital requirements remain low [3]. - The company started 2026 with 8,886 active clients, marking a 55.62% increase from 5,710 at the beginning of 2025, the highest growth rate in its history [4]. Market Position and Regulatory Environment - The company's registered electronic notification platform is protected by EU eIDAS regulation and proprietary patents, providing structural advantages against pricing pressures in the communications technology sector [3]. - Recent regulatory changes in Spain and Europe, including Organic Law 1/2025, have driven the adoption of Lleida.net's patented technologies, impacting approximately 3.5 million judicial proceedings processed annually in Spain [5]. Intellectual Property and Market Presence - Lleida.net holds over 300 patents in more than 60 countries related to registered notification, electronic contracting, and digital signature technologies [7]. - The company's shares are listed on BME Growth in Madrid, as well as on Euronext Paris and the Stuttgart and Frankfurt stock exchanges [7].