Data erasing business Blancco Technology (BLTG:AIM) is on track to grow profit by 35% to 40% this year as organisations come to terms with the need to effectively manage confidential digital data.

With a new mobile diagnostics revenue line coming on stream through its full ownership of the Xcalibar business, analysts suggest the shares could trade substantially higher through 2017 than the current 224p level.

Paraag Amin, technology analyst at broker Peel Hunt, slapped a 340p share price target on the stock when he published a detailed initiation of coverage note on the company in September. More recently, on 29 November, Panmure Gordon’s Adrian Kearsey reiterated his own 326p stock valuation in response to Blancco’s positive first quarter trading update. Blancco’s financial full year runs through until 30 June 2017.

Blancco, currently trading at 220p, is fast carving itself a valuable niche in the modern digital environment providing clients with a regulation and compliance-friendly way to dispose of data. These might be live environment information only needed temporarily, or data that has served its useful purpose and is no longer required. Blancco has 18 certifications, approvals and recommendations from national governing bodies.

A current year price to earnings (PE) multiple of 25.4 should fall sharply presuming it meets its 20% to 30% earnings growth expectations. A 325p share price would imply a PE of 24 on a 12 to 18 month view. 

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