Dominant market positions, recurring revenues, high cash generation and definable prospects for growth. We found fertile ground in the financial software sector last week, with a Buy recommendation on GBST Holdings. The obvious next stop is IRESS, which has been busy sewing up the market for ‘front-office’ software, while GBST has been busy with the back office.
Like GBST, IRESS also has two main divisions, for financial markets and wealth management. If anything, though, IRESS boasts even stronger market positions, particularly in financial markets.