Frost & Sullivan Publishes Annual Update on Safe-T Ltd. - Company's 2017 financial results are in line with expectations; stock target price unchanged at NIS 9.38

Independent Equity Research is published in the framework of the Tel Aviv Stock Exchange (TASE) Analysis Program

TEL AVIV, Israel, May 10, 2018 /CNW/ -- TASE analysis project was launched in 2016 in order to raise the investors' level of knowledge of TASE listed technology and life-science companies and the markets in which the companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by removing the barrier of lacking understanding in the market.

In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

Safe-T released its annual report on 25  March, 2018 detailing the following:

The company developed and is now promoting, in partnership with its distributors, a dedicated certification program.

• The company believes that further measures taken during 2017, such as replacing distributors, recruiting a team in the US, appointing a CMO and so on, have laid strong foundations that will soon materialize into more contracts and increased revenues.

Going forward, Safe-T's growth strategy comprises;

• Monetization on its extensive distribution and partner network
• Boosting marketing and sales activities, focusing on enhancing their brand and reputation
• Continued investment in R&D, improving existing products and developing new ones

Safe-T's patented technology is recognized by experts and has been the recipient of prestigious awards such as the Fortress Cyber Security Award for Compliance and Authentication & Identity (April 2018) and a 2018 InfoSec Award (March 2018).

We view the company as an attractive one, but believe that it entails the typical risks for a small-cap company in the rapidly growing cybersecurity space.

• Major clients in each of the company's target industrial verticals, indicate market confidence.
• If the company successfully penetrates the North American and European markets, it may be acquired in the coming years, as the consolidation trend surges.

We maintain Safe-T's equity value at $53M / NIS 188M corresponding to a target price ranging between NIS 8.91 and NIS 9.88; a mean of NIS 9.38.

• Net Revenues (Gross Profit) in 2017 increased to $513K from $331K in 2016, an increase of 55%. The growth can be attributed to an expanded customer base.
• Safe-T's Software Define Access platform addresses real needs and a large and growing market totaling over $6 billion in 2018, according to Frost & Sullivan estimates

About the company - Safe-T Group Ltd. ("Safe-T"), listed on the Tel Aviv Stock Exchange since 2016, is a cybersecurity company that was founded in 2013 in Israel. The company develops and markets its Software Defined Access Solution, which is designed to mitigate attacks on business-critical services, applications and data for a wide range of industries, including financial, healthcare, government and manufacturing organizations. Deployed globally, its product protects thousands of employees in enterprises and governments entities, securing their data, services, applications and networks from internal and external data threats. The software mitigates data threats such as un-authorized access to data, services, and networks, as well as data-related threats that include data exfiltration, leakage, malware, ransomware, and fraud. Headquartered in Israel, Safe-T is active in North America, APAC, Africa, and Europe.

For the full report please click here

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SOURCE Frost & Sullivan