Most popular equity research this week | 5 - 16 Mar

Burford Capital (BUR)

2017 results a 20%+ beat to our forecasts | Liberum, 14 Mar

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"Burford’s FY17 results were a 20%+ beat on revenue and Adj. PBT. Concluded investments produced a 75% ROIC and 31% IRR, better than the 60% and 27%, respectively, achieved in the prior year. FY18 has begun very strongly, with $128.5m committed to 12 new investments in the first two months, versus just $1m in the same period last year..."

UK North Sea M&A – Smaller company potential

by Arden Partners, 7 Mar

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Jersey Oil And Gas | Independent Oil & Gas | Rockrose Energy | Serica Energy | Faroe Petroleum | Premier Oil | EnQuest | Parkmead | Amerisur | BowLeven | Genel | Great Eastern Energy | Hardy Oil & Gas | Hunting | Hurricane Energy | Independent Oil & Gas | Lamprell | Rockhopper

"This book is split into two parts. The first part is thematic and focuses on the UK North Sea, where we discuss the potential for smaller companies to benefit from making acquisitions of producing assets. This is based on a screen of potentially available assets, and their likelihood of being available for sale. In the second part, we include profiles of the oil and gas companies in our coverage, and take the opportunity to update several of our models and recommendations. We intend this to be the first in a series of periodic publications focusing on themes within the oil and gas sector..."

Focusrite (TUNE)

Rising scale | Edison, 9 Mar

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"Focusrite’s trading statement indicates constant currency sales growth of over 25%, even better sales growth than the headline 19%, because of the US dollar’s depreciation. The background is a continuation of widespread demand for the full product range across all the main geographies. Although trading patterns may be shifting to the first half, we are upgrading our forecasts by c 5%..."

Somero Enterprises (SOM)

Full-year results – dividend turbo boosted | finnCap, 14 Mar

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"Full-year results were slightly above expectations and point to being on track to exceed our previous FY 2018 forecasts slightly. Market conditions remain robust in its main US market, with significant growth seen in Europe. A revised dividend policy gives new clarity to cash returns, (backed by $19m of net cash), and triggers a strong uplift in ordinary dividend plus a supplementary dividend. The shares remain attractive on an earnings basis but also have premium yield attractions. Our raised 465p TP is based on a P/E of 17.0x in 2018 and 16.0x in 2019 and offers strong upside scope to the shares. Market conditions remain favourable and cash returns underwrite our positive stance..."

AB Dynamics (ABDP)

A Dynamic Performance | Progressive Equity, 13 Mar

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"AB Dynamic’s (ABD) shares have risen tenfold since its 2013 AIM admission, fuelled by an impressive 19% organic revenue CAGR. The company is investing in a platform to sustain this performance. In the last 18 months it has opened new facilities, bolstered in-country customer support, reshaped its management structure and raised capital. The final part of this plan, a new CEO, is expected to take the helm in the summer. He, or she, looks set to inherit a business in great shape and enjoying long-term growth drivers. ABD’s investment should help it to capitalise on these trends and sustain its impressive growth..."

Conviviality (CVR)

Self-inflicted woes & why we are glass half-full | N+1 Singer, 9 Mar

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"Yesterday’s shock profit warning led to a 58% fall in the share price. There is no escaping the disappointment has changed sentiment from Conviviality being regarded as a much improved business with a cogent growth and DPS angle, to one where there are now doubts. However, we feel most of the problems are self-inflicted and thus rectifiable, rather than systemic. We also feel covenant risk fears are overplayed..."

Innovaderma (IDP)

Trading update | finnCap, 9 Mar

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"Full-year results to June 2018 are expected to be below our previous forecasts of £13.5m of revenue and £2.2m of adjusted pre-tax profit. This has been mainly driven by lower-than-expected orders placed by Superdrug for Skinny Tan in Q2 2018, despite the brand’s continued strong in-market growth. Whilst the company indicates that revenues should be substantially higher in 2018 than in FY 2017, pre-tax profits are expected to be similar to last year. Consequently, we are putting our forecasts and target price under review until we have have better visibility over Q2 ordering patterns from Superdrug..."

Fulham Shore (FUL)

Hunkering down in a tough market | Allenby, 8 Mar

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"The Fulham Shore Plc (“FUL”) has issued a trading statement for the year ending 25 March 2018. Primarily due to trade in the London surburban restaurants being weaker than anticipated, headline EBITDA for the period is expected to come in below market expectations. Additionally, restaurant openings for the year to March 2019 have been reined back reflecting the wide spread and well publicised market malaise impacting the UK casual dining sector. The net result is a reduction in our headline EBITDA estimate for the year to March 2018 by 15% to £7.4m and for the year to March 2019 by 28% to £7.6m..."

Wandisco (WAND)

Microsoft to co-sell Fusion | Edison, 12 Mar

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"WANdisco’s co-sell agreement with Microsoft is possibly the company’s most important partnership to date, strengthening the company’s already enviable platform to capitalise on the rapid growth in cloud and hybrid cloud computing. Agreements with IBM, Alibaba, Dell/Virtustream and now Microsoft give a clear indication of the capability and uniqueness of Fusion. Near- and long-term prospects are reinforced as is the potential for WANdisco to grow into and exceed the current rating..."

Zotefoams (ZTF)

Forecast Upgrades, Bull Scenario Intact | Arden Partners, 13 Mar

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"Zotefoams has reported 2017 results ahead of consensus and indicated a strong start to the year with volumes up 8% and price/mix benefits from HPP. We anticipate good consensus upgrades in the near term and longer-term upside as growth opportunities are crystallised. Reiterate buy rating..."