Most popular equity research this week | 19 - 23 Mar

IQE (IQE)

FY’17 a transformational year, more to come in FY’18 | N+1 Singer, 20 Mar

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"IQE has released its results for the year to December ’17. While the results themselves are strong, these were largely flagged at the trading update in December, and we see the FY’18 and FY’19 outlook as more important for the share price from here. The group expects continued growth in wafer sales, driven by both the expansion of existing business and qualifications of new business streams..."

Burford Capital (BUR)

Upgrading forecasts significantly | Liberum, 20 Mar

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"The CY17 results were a 34% beat at the EPS line. Given the positive post balance sheet date news regarding the Teinver sale and the $180m bond issue, we have materially increased our forecasts..."

Cloudcall Group (CALL)

Solid FY’17 but cutting FY’18E EPS on higher investment | Arden Partners, 20 Mar

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"CALL’s solid FY’17 results continue to underpin our conviction. Growth continues at pace in all regions assisted by rising internal efficiency while the outlook statement points to management confidence, good momentum on product development and support from regulatory trends. While we have cut our FY’18E numbers on accelerated investment in growth (and FY19-20E on lower R&D credits – see detail inside), we view management’s FY19E aspiration of ~break-even and cash trough as intact, with tangible upside risk from further M&A by Bullhorn and improving ARPU from new products launches in the mid-term..."

Quarter end looms with some signs of stability

by Stockdale, 21 Mar

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APC Technology | Braemar Shipping | James Cropper | EU Supply | FDM | GetBusy | Private & Commercial Finance | Synectics | Sprue Aegis | Tricorn | Warpaint

"As the quarter ends and Easter approaches, the results marathon is set to pause. As highlighted previously, the vast majority of results have been as anticipated, with some notable exceptions. The state of the UK economy is improving according to the Chancellor. The MPC meeting on Thursday is likely to leave interest rates unchanged but an increase in May seems likely, even though inflation is set to fall over the next 12 months. We have continued to see significant M&A activity. In Share News & Views, we comment on Braemar Shipping*, Burford, CLS, ECSC*, FDM*, GetBusy* and XLMedia..."

Accrol Group (ACRL)

Some signs of light? | Zeus Capital, 19 Mar

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"As previously announced in January 2018, recent business performance has been adversely impacted by increases in input costs which remains tough. Adverse foreign exchange contracts should expire over the coming months and ease some pressure. However, a new development is significant internal cost escalation which is higher than previously anticipated. We now expect a loss of £5.0m at the adjusted EBITDA level for 2018E (vs. £0.8m previously)..."

Accesso Technology Group (ACSO)

Mixed performances but strong overall result | N+1 Singer, 21 Mar

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"Accesso has released full year results in line with the indications given in the 25 January trading update, which highlighted a small revenue beat and an adjusted EBITDA performance substantially ahead of expectations. Full year revenue increased 30% to $133.4m, delivering adjusted EBITDA up 29% to $24.6m – 8% ahead of our estimate. While the group result was ahead of expectations, we suspect that the positive impact of strong Ticketing volumes was offset by lower than expected Queuing revenues..."

Sopheon (SPE)

Strong momentum continues | finnCap, 22 Mar

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"Strong momentum continues, with a checklist of positive catalysts into FY18 and FY19: repeat outperformance; reinstated forecasts, having been upgraded since being suspended at the time of the trading update in December; product excellence leading to global large enterprise adoption; regular product updates and functionality improvements to keep existing customers enthused and potential customers even more interested..."

Powering ahead | Progressive Equity, 22 Mar

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"Sopheon has delivered a very strong 2017 – in line with the previous trading updates, and benefiting from a very good end to the year. The group is ahead of our estimates on all metrics, and is well placed going into 2018 and beyond. Management have signalled their confidence with the welcome introduction of a maiden dividend (2.5p). We upgrade our estimates for both 2018 and 2019..."

Chariot Oil & Gas (CHAR)

Into the Rabat Deep | finnCap, 20 Mar

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"Strap yourself in, we’re going on a ride! Chariot’s long awaited RD-1 well on the JP1 prospect is drilling ahead. This is one of the largest prospects to be drilled globally this year and the first offshore Morocco for four years. A result is expected in around a month and, whatever the outcome, it will be volatile, so this is not one for the faint-hearted. Within our 39p/sh 3P NAV, which sets our price target, we carry JP-1 at a risked valuation of 12p/sh. So, in the event of a duster, our 3P NAV could fall 30%..."

Marks And Spencer Group (MKS)

Rating downgrade – risk too high pre possibly momentous Prelims | Whitman Howard, 23 Mar

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"The appointment of a new Food Division Managing Director – not unexpected after the change of tack on Food at the Nov 17 Interims – reinforces the sense that significant further re-positioning commentary is likely at the 23rd May Prelims – possibly accompanied by negative numbers impacts. We wish to neutralise our recommendation before the pre-announcement positioning work from the company starts..."

Jackpotjoy (JPJ)

A transformational year | Edison, 20 Mar

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"2017 was a transformational year for JPJ, with a successful London listing followed by substantial improvements in the capital structure. JPJ is the leading operator in the £800m UK online bingo market and has now delivered five consecutive sets of robust quarterly results. FY17 revenue growth of 14% y-o-y to £304.7m was accompanied by an operating cash flow of £102m. After the final major earn-out payment in June 2018, we expect meaningful deleveraging..."

NEXT (NXT)

Positive long-term stance | AlphaValue, 23 Mar

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"FY2017 was very challenging for Next and seems to be one of the toughest for many years. The company has reported declining sales and profits which were expected. Full-year sales were down 1% to £4,055m. Next brand’s full-price sales were up 0.7%, while sales including markdowns decreased by 0.6%. Online sales have increased by 9.2% to £1,887m, which mitigated the 7.9% drop in retail sales (£2,123m)..."