Research on Craneware plc (CRW:LON) from Capital Access Group
Craneware has been caught in the general sell-off in software stocks prompted by concerns that Artificial Intelligence (AI) is a serious threat to the industry. That chuck the baby out with the bathwater reaction has driven Craneware to unprecedentedly low valuations despite the company's embedded position in US hospitals for its value cycle software backed by its proprietary data lake. Craneware is more likely to be a beneficiary than a victim of AI, as already demonstrated by the pace at which it was able to develop a software solution for the proposed introduction of the HRSA Rebate Pilot Model together with early access to Microsoft's AI tools and development resource. Complex non-standard software solutions based on proprietary code backed by unique data resource with high security requirements meeting significant client need coupled with deep existing customer relationships do not look susceptible to substitution by AI to us. In the meantime, the software apocalypse has produced an exceptional opportunity in Craneware for the fearless and the thoughtful.