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EERP Keeps Virtualware at BUY, €8.00; 2027 Base Gives €13.25

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EERP Keeps Virtualware at BUY, €8.00; 2027 Base Gives €13.25 Bilbao, 28 October, 2026.- European Equity Research Partners (EERP) kept its BUY rating and €8.00 target price on Virtualware (Euronext Growth Paris: ALVIR) in a flash note published on 22 October.

The same valuation method applied to 2027E consolidated revenue of €11.52m gives a target price of €13.25. The reference price in the note is €5.25, the 16 October close.

EERP is a Spain-based, issuer-sponsored equity research firm that covers listed companies across Europe, the Middle East and Central Asia. Virtualware commissioned the coverage.

The €8.00 target rests on 2026E revenue of €7.29m, which includes three months of Virtalis Holdings Limited, acquired on 28 September 2026. EERP estimates 2026E net debt at €4.89m.

EERP states that the valuation base will have to roll to 2027 by the time of Virtualware’s FY26 results. On current estimates, the published method then returns €13.25.

Simon Powell, Head of Research at EERP and lead analyst on the note, wrote:

“Applying the same methodology to 2027E consolidated revenue of €11.52m gives a target price of €13.25.

“We have not rolled the base year, because doing so mid-year would be a methodology change dressed up as an estimate change, and because a 67% increase in target price driven purely by the choice of denominator would not be credible.

“But by the time of the FY26 results the 2026 base will be historic, and the roll will have to happen. Investors should understand that the mechanical consequence of our published method is a materially higher target price once 2027 becomes the forward year.”

Virtualware paid €4.95m in cash and assumed €1.3m of debt, an enterprise value of €6.25m. That equals 1.58 times Virtalis’s FY26 revenue of €3.97m and 7.2 times its adjusted EBITDA.

Virtalis, founded in 2003, develops virtual reality and real-time 3D visualisation software. It has 19 employees.

Pro forma 2026 revenue reaches €10.3m against €6.3m standalone. The UK becomes the largest market at close to 38% of pro forma revenue, and revenue outside Spain rises from 54% to 78%.

Transaction costs of €337k cut 2026E EPS to €0.087 from €0.161 standalone, a dilution of 46%. EERP estimates accretion of 14% in 2027E and 15% in both 2028E and 2029E.

EERP raised its 2027E revenue estimate to €11.52m from €7.18m, an increase of 60.5%. It raised 2027E EBITDA to €3.35m from €1.96m.

EERP initiated coverage of Virtualware on 22 June 2026 with a BUY rating and a €7.42 target price. It raised the target to €8.00 on 30 July 2026.

The full note is available at https://www.europeanequityresearch.com/research/virtualware/2026-10-22-flash-note.

Founded in 2004, Virtualware is a global pioneer in Real-Time 3D industrial software. The company provides a portfolio of solutions that transform industrial data and simulation models into operational real-time 3D environments, enabling organizations to connect complex data sources, create and simulate interactive applications, and securely deploy, manage, and scale them across the enterprise.

The company serves global organizations and institutions such as Lockheed Martin, BAE Systems, GE Vernova, Subsea 7, NextStarEnergy, Magna, Lam Research, Blue Origin, Rolls-Royce, Ford, Volvo and Bosch.

Virtualware is headquartered in Bilbao, Spain, with offices in the United Kingdom, Canada, the United States and Sweden.

Virtualware has traded on Euronext Growth Paris since June 2025.

More information is available at https://virtualwareco.com.

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