Research Tree | Equity Research for Investors

25 Jan 22

SHORE CAPITAL - Touchstone Exploration+ (TXP) House Stock, 87.5p

Following the announcement of test results for all three zones at Royston, where we now see a compelling oil development opportunity, we have revisited our FY21F and FY22F estimates for Touchstone and introduce numbers for FY23F. Our forecasts for the financial year just ended are not materially changed (certainly in revenue and net profit terms) – with Touchstone’s results for the nine months to September having previously indicated that it was tracking reasonably well against our estimates for

Companies: Touchstone Exploration Inc

26 Jan 22

Somero Enterprises - Post year-end trading update – further 7% EPS upgrade

Further to its 7 December update, the group has posted a positive trading report, highlighting a better-than-expected profit and cash performance, driven by strong H2 trading in December, with North America, Europe and Australia all performing robustly. We raise our FY21 EPS forecast by 6.9%, and lift our dividend forecast by 9.2%. The outlook remains positive with a slightly greater investment in NPD supporting longer-term growth resulting in FY22 EBITDA similar to that of FY21. We raise our Ta

Companies: Somero Enterprises, Inc.

27 Jan 22

ITM - Cash Position an Advantage

ITM’s interim results broadly reflect the guidance given in the December trading update although there has been progress in the underlying business since then, notably with a 24MW contract win and German Federal support for activities in the key European market. Importantly the company’s cash position following the November fund raise means that it is now funded to take production capacity to 5GW and expects to break ground on the second UK factory in H2 calendar 22. In our view the ability to d

Companies: ITM Power PLC

24 Jan 22

LIBERUM: Shanta Gold* - Results inline, more 2022 guidance

Companies: Shanta Gold Limited

25 Jan 22

SHORE CAPITAL - Sureserve Group+ (SUR) House Stock, 86.5p

Compliance and energy services group Sureserve today posted a 45% increase to £13.6m in adjusted PBT for FY21 to September, 5.4% ahead of our estimates, on better than forecast revenue in the higher margin Compliance division. Cash was also slightly ahead of the company’s guidance at £16.5m. We are increasing our FY22F and FY23F PBT estimates by over 3% to £16.4m and £18.6m respectively (possibly conservatively) and are making bigger percentage increases to our net cash forecasts. The Group has

Companies: Sureserve Group Plc

25 Jan 22

Hybridan Small Cap Feast 25/01/2022

Joiners: No Joiners Today. Leavers: Rutherford Health has left the AQSE and Prime People has left AIM. What’s cooking in the IPO kitchen? ACP Energy plc, a company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset, seeking to join the Main Market (Standard) The Company intends to focus on opportunities in the natural resources sector, raising gross proceeds of £830k. Due 28 Jan. Artemis Resources ltd, an ASX listed mining

Companies: STAF CASP EKF SAR LTG ERGO EDR BARK

27 Jan 22

Strong FY21 update prompts double digit upgrade

Today’s positive year end update prompts a 10% upgrade to our FY21 EBITDA forecast. RBG Legal Services is performing well under two highly regarded brands (Rosenblatt and Memery Crystal), whilst LionFish and Convex Capital have attractive prospects for FY22. The shares are trading on a current year P/E rating of just 10x, a material discount to peers. We consider this wholly anomalous, given RBG’s trading momentum, clear growth ambitions and attractive dividend yield (6.0% for FY22). Our 160p Ta

Companies: RBG Holdings Plc

28 Jan 22

ITM - Details on Sale to Ammonia Industry

Further details on ITM’s latest electrolyser sale show that it is to an ammonia production facility where there is potential for significant follow-on work. Globally the ammonia industry uses c.30mt of hydrogen a year with nearly all produced using natural gas. With gas and carbon prices at record highs the attractiveness of green hydrogen to the industry is rising and coupled with the avoidance of input cost volatility and pressure to decarbonise, it is not surprising that demand is beginning t

Companies: ITM Power PLC

20 Jan 22

LIBERUM: New Energy Monthly - Meetings with 3 UK New Energy stocks

Companies: AFC ATOM LIB

25 Jan 22

Strong end caps a year of significant progress

Continued strong trading means FY21 results will be ahead of upgraded expectations. Trading in the core business is reported to be robust and demand has persisted for the group’s sample collection devices through to the end of the year. Further investment is expected in FY22 to drive core business growth, which remains a key strategic objective for the new management team. Last week’s announcement of a strategic partnership with Yourgene will help broaden the offering and underpin future growth

Companies: EKF Diagnostics Holdings plc

26 Jan 22

Hard won stability a platform for growth in 2022

Bushveld ended 2021 on a firmer operational footing than it began the year, its focus on stabilising production levels at Vametco helping it reach the upper end of its rebased full-year group production guidance range whilst keeping costs under control. With operational stability now in place, thoughts can once more turn to growth. The commissioning of Kiln 3 at Vanchem is on track for Q2 2022 and should bring higher rates there in H2 and see Bushveld exit the year with a sustainable group produ

Companies: Bushveld Minerals Limited

24 Jan 22

WH Ireland: Pantheon Resources (PANR) - Spudding of Theta West #1 and Operations Update

Pantheon Resources announced that it has commenced drilling the Theta West #1 well, which has now drilled to a depth of 1,874 feet – target depth is circa 9,200 feet. The well is targeting i) the Upper Basin Floor Fan and ii) the Lower Basin floor fan, both of which are referred to as Theta West. Theta West has a combined best estimate success-case recoverable resource of 1.4 billion barrels of oil.

Companies: Pantheon Resources plc

27 Jan 22

FY22 tracking in line despite labour shortages

With H1 revenues up 10% yoy, DOTD expects FY22 revenues, adj. EBITDA/PBT to be in line with cons, despite cost/hiring pressures in the labour market. We make no changes to our forecasts. After stellar group organic growth of 23% in FY21, heavily driven by SMS uptake, guidance was for a moderation this year and DOTD confirms that SMS volumes are more normalised. We had attributed a good deal of the moderation to SMS, though DOTD today flags labour market tightness has also impacted H1 growth. H1

Companies: dotDigital Group plc

24 Jan 22

In line Q4 21 even as BetMGM momentum accelerates

Entain reported a largely in line Q4/FY 21 trading update, registering cc growth of 6/8% for Q4/FY21, respectively. As expected, online revenue was down 6% in Q4, while retail was up 62%. BetMGM performance was well ahead of consensus as well as our expectations. Entain now expects FY21 EBITDA to come in between £875m and £885m (vs £850-900m previously). We will raise our BetMGM estimates as well as the valuation to factor in the strong US momentum.

Companies: Entain PLC

27 Jan 22

On track for profitable double-digit growth

Companies: dotDigital Group plc

28 Jan 22

Profitability more than doubles

LVMH published consensus-smashing FY21 figures and has opened strongly the FY release period for the luxury sector. All businesses recorded a better-than-expected performance. Highlighting the spectacular performance in Fashion & Leather goods and a strong acceleration in the Watches & Jewellery division. The strong desirability of the group’s brands and strong pricing power of Dior and LV will continue to support the top line and profitability. LVMH is confident in its ability to maintain its

Companies: LVMH Moet Hennessy Louis Vuitton (MC:EPA)LVMH Moet Hennessy Louis Vuitton SE (MC:PAR)

28 Jan 22

Above guidance revenues

The group posted above guidance revenues, thus strengthening management’s 2024 financial objectives which are still to be fully reflected in consensus expectations.

Companies: UniCredit (UCG:BIT)UniCredit S.p.A. (UCG:MIL)

28 Jan 22

2022 should see Digital Business's acceleration

Software’s FY21 numbers were broadly in line with consensus on revenues but much higher on profitability. Bookings targets for A&N were met even though slippage caused DB’s bookings to be below guidance. Regardless, there was a good transition of bookings into revenues and DB did show some acceleration in the last quarter. The company’s guidance for FY22 is slightly above expectations and the confirmation of FY23 targets is a reassuring factor.

Companies: Software AG

28 Jan 22

Margins fail to impress

Wärtsilä’s share price plummeted >8% (at the time of writing) as the beat on Q4 sales and order intake was offset by the miss on comparable operating margins vs the street and our expectations. For FY22, while the company has guided for a better Q1 yoy, the margins are expected to be impacted by an unfavourable sales mix and cost inflation. We maintain our cautious view on the stock’s valuation.

Companies: Wartsila Oyj Abp

28 Jan 22

Healthy operating results, further fortified by asset revaluation gains

2021 ended on an exceptional note – with most key divisions reporting healthy results and the value of forest and energy assets (again) being revised upwards. While the sector is faced with the risk of fizzling out forest and wood market euphoria, the group garners ample support from other promising areas, i.e. pulp, packaging and energy. Overall, Stora is an attractive sector bet, especially given its affordable price tag vis-à-vis other forest-heavy AV peers.

Companies: Stora Enso Oyj Class R

28 Jan 22

Decent progress towards cloud transition

Throughout 2021, SAP continued to see an increasing shift towards cloud transition. The group’s ‘RISE with SAP’ programme continued to attract customers and S/4HANA showcased robust growth. These trends are expected to persist in 2022. Licensing revenues declined with a similar trend expected going forward. Operating profitability was lower than expected but the bottom line benefited from a strong contribution by Sapphire Ventures. The profitability target for 2022 is lower than expectations but

Companies: SAP SE

28 Jan 22

CMD: unsurprisingly, Hera confirms it is good value for money

The new five-year strategic plan to 2025 is marked by strategic adjustments rather than clear surprises. Although EBITDA targets by 2025 seem conservative, a strong acceleration in capex (+59% vs the previous plan) and a focus on Waste activities embody the growth drivers. An acceleration in dividend distribution also allows it to offset the historical decrease in dividend yield lasting a decade, good news for shareholders. We reiterate our confidence and positive recommendation.

Companies: HERA (HER:BIT)Hera S.p.A. (HER:MIL)

28 Jan 22

Challenging start to 2022

In Q4 21, organic sales growth improved sequentially (+4.8% vs -0.3% in Q3 21) and reflected mainly price increases to offset cost inflation. Organic growth was spread across all geographies. The recurring EBIT margin of 4.5% (in line with expectation) supported a negative cost efficiency due to continuing constraints in the supply chain. Q1 22 should be similar to Q4 21 with cost inflation and disruptions in the supply chain. A sequential improvement is awaited from Q2 22.

Companies: Electrolux

28 Jan 22

A very ambitious goal for 2030

After experiencing better-than-expected year-end trading, H&M has released a very ambitious long-term goal. The group is targeting to increase sales by 10-15% per year, doubling sales by 2030 (from the base line of SEK198.97bn). The group also expects the operating margin to achieve 10% no later than 2024. The updated long-term guidance was significantly ahead of the current market consensus and our expectations.

Companies: H & M Hennes & Mauritz (HM-B:STO)H&M Hennes & Mauritz AB Class B (HM.B:OME)

28 Jan 22

Strong fee income generation

The fourth quarter operating trends are in line with the group’s 10% RoTE objective set for 2022 (without any interest rates support). Ongoing strong fee income generation, merger-related cost savings and the benign cost of risk will help absorb net interest margin headwinds.

Companies: CaixaBank (CABK:BME)CaixaBank SA (CABK:MCE)

28 Jan 22

Small Cap Feast 28/01/2022

Banquet Buffet Brandshield 14.5p £17.1m (BRSD.L) The provider of cybersecurity solutions for brand oriented digital risk protection has raised £1.5m at 14p with 1 for 2 warrants at an exercise price of 20p. Net proceeds from the Placing will be used to build on the following three strategic priorities: - Investment in sales and marketing efforts both direct and channel partners o Converting the near-term extensive organic sales pipeline - Ongoing software development to maintain market-lea

28 Jan 22

SP Angel Morning View: China jails 47 steel executives for faking emissions data

Antofagasta (ANTO LN) – US kills Antofagasta's Twin Metals nickel project in Minnesota Aura Energy* (AURA LN) – Quarterly report highlights progress on Tiris development Greatland Gold (GGP LN) – Drilling of extensions to Eastern Breccia Zone at Havieron yields best results so far outside of the SE Crescent Zone. Phoenix Copper* (PXC LN) – Geophysical results from Navarre Creek helps provide targets for drilling later this year Serabi Gold* (SRB LN) – Serra Zone veins intersected in undergr

Companies: AEE ANTO GGP PXC SRB STM

28 Jan 22

The sale of 49% of its towers will be redistributed

Q4 revenues were up by 3.3% yoy and lfl and quite in line with expectations. The good news comes from the EBITDA which was unchanged yoy and lfl but indeed up by 3% on the core telco business excluding the TV unit. The key point that should please investors is: after a new agreement for the sale of 49% of the tower business in Sweden, the Board intends to propose to return the net transaction proceeds to shareholders.

Companies: Telia Company (TELIA:STO)Telia Company AB (TELIA:OME)

28 Jan 22

A very strong FY21 and a positive outlook going into FY22

A very strong Q4 to end a record year The outlook is positive going into FY22 The net cash position will help the group finance the green transition We will revise our numbers upwards

Companies: SSAB (SSAB-A:STO)SSAB AB Class A (SSAB.A:OME)

28 Jan 22

Making solid progress

Amaero International Ltd (ASX:3DA) is a global specialist in metal additive manufacturing for the defence, aerospace and tooling sectors. The company has reported Q2 FY22 cash receipts and revenues of $0.134m, a 113% increase on the cash receipts generated in the previous corresponding period (pcp), and up 21% quarter-on-quarter. Monthly cash burn increased to $0.64m from $0.54m in the same quarter a year ago but was down on the $0.85m cash burn reported in Q1 FY22. The company invested in addit

Companies: Amaero International Ltd