Canaccord Genuity sees major upside at Wilmington after Spanish bolt-on deal

(Sharecast News) - Canaccord Genuity has reiterated its positive stance on Wilmington following the company's recent acquisition of a Spanish regtech company, saying it sees around 35% upside from the stock's current level. The broker kept a 'buy' rating and 450p target price for the information, data, training and education solutions company, which was trading 1.5% higher at 336p by 1051 BST.

Wilmington announced on 12 August that it was paying £105m to take over Conversia, a Spanish firm focused on the highly regulated data privacy sector.

According to Canaccord Genuity, the acquisition has "multiple attractions", including the potential to expand Wilmington's total addressable market (TAM) and recurring revenue share within the core area of governance, risk and compliance (GRC) training.

Meanwhile, with the Spanish firm said to be growing at a double-digit rating at time of expanding margins, the financials to Wilmington look "favourable", the broker said.

"Conversia looks like an attractive asset, well-aligned with Wilmington's 'must-have' GRC training services, as well as the emerging RegTech platform, adding a market leading software and services portfolio with high retention rates (>90%) and recurring revenues (~72%) to the group," Canaccord said.

"With completion subject to Foreign Direct Investment clearance in Spain (estimated in Wilmington's 2Q26), we leave our forecasts unchanged, but expect Conversia to be earnings enhancing in the first full year of ownership."