paragon - Dynamic driving

Despite rapid growth, paragon’s shares have performed poorly since the positive reaction to half year results in August, in part due to value attribution from Voltabox which has also slipped back. Recent acquisitions of SemVox by paragon and Navitas and ACCURATE by Voltabox do not warrant the reaction, and we expect Q318 results in November to underpin market expectations. On our forecasts, paragon is now trading on an undemanding FY19 P/E of just 9.4x and our DCF remains at €95 a share.