Check out what's trendy in the world of equity research this week...
Companies: ASC, AVCT, FPM, SNR, SOG, TEF, TPK, TSTL, YOU
Unveiling details on growth plans | Faroe Petroleum Plc | FPM
GMP FirstEnergy, 21 October
"Faroe held an analyst trip on 18th and 19th of October in Norway. The Company unveiled production addition (+3.5-5.5 mboe/d) at Tambar well beyond our expectations. While the most likely tie-back development concept at Pil means that the field net production plateau is just 7 mboe/d versus 13.5 mboe/d previously, Brasse and Njord are expected to contribute 16 mboe/d by 2021; which is well above our expectations. Overall, we believe that the company’s existing assets could comfortably support c.40 mboe/d by end 2021 at the low end of the range of the company’s aspiration of..."
A strong FY 2016 | Tristel Plc | TSTL
finnCap, 13 October
"Full-year results were ahead of July’s trading update, boosted by a year-end Fx benefit and stronger than expected gross margins. Revenue growth of 12% was driven by overseas markets (+22%) and assisted by a stronger UK performance in the second half. A broader and deeper strategy for the US market, including the registration of surface and water disinfectants with the EPA, is now being pursued, with expected launches in FY 2019. We have increased our target price to 150p to reflect a 6% EPS upgrade to 2017 earnings and introduced a 2018 forecast, calling for EPS of 7.0p...."
Disappointing expected slowdown in FY17 despite an impressive performance in FY16 | ASOS | ASC
AlphaValue, 20 October
"The online fashion retailer posted a 26% surge on its FY16 revenues to reach £1,445m. Retail sales amounted £1,403m. Sales in the home market were up 27% to £603.8m. International sales edged up 25% to reach £799.9m, contributing 57% to total retail sales. A strong favourable momentum was experienced in the USA with a 50% sales’ rise (£179.2m), underpinned by a positive FX impact as the performance at constant rates was 40%. In Europe, retail sales amounted to £375m, i.e. a surge of 28%. In other regions, adverse FX moves slowed growth to a reported 9% while sales at constant rates edged up 14% to £245.8m boosted by positive momentum in Russia and Australia..."
3Q16 trading update | Travis Perkins Plc | TPK
Panmure Gordon & Co, 19 October
"This time last year the building merchant sector delivered a number of profit warnings, with September-October sales disappointing. Unfortunately history appears to be repeating itself and Travis has warned that “Adjusted EBITA [will be] slightly below current market consensus of around £415m”. Given the uncertainty caused by the referendum we are not surprised (see our Brexit note of 22 July), when we moved our earnings estimates to below consensus..."
Disappointing profit warning; forecast downgrades | Senior Plc | SNR
N+1 Singer, 20 October
"A highly disappointing update from Senior reports a number of issues adding up to the Group being behind expectations. Following the Flexonics issues over the past 12 months, there are now issues on the Aerospace side which are affecting the outlook. In a period when some stability was required, this is disappointing. We have downgraded FY16 EPS by 6.8% and, whilst we see Senior remaining a US takeover target, we move from Buy to Hold (target price down from 262p to 196p) until more clarity is available on the direction of the Group..."
Safe as houses | Telford Homes Plc | TEF
Equity Development, 17 October
"Telford Homes is in as strong a position as it has ever been in the 15 years since flotation. The company has a strong balance sheet, with an expanded equity base and significant headroom on its banking facilities, a large development pipeline and impressive forward sales position, and good levels of demand for its product and geography from a diverse group of buyers..."
Smart, connected data | YouGov Plc | YOU
Edison, 21 October
"YouGov’s FY16 results show the continuing benefits of its strategy to build on its Data Products and Services, delivering revenue and profit growth well in excess of the market. There was also some benefit from currency movements. The group’s transition from market researcher to global data and analytics business should drive continuing growth well ahead of industry rates, with the roll-out of scalable products and services internationally supporting margin and cash generation. The shares have performed strongly as this strategy has started to reap financial rewards, with the..."
Cloud services rises to 39% of revenue book | Statpro Group Plc | SOG
Edison, 19 October
"In a brief trading update, StatPro says that its annualised recurring revenue (ARR) for StatPro Revolution, the cloud-based portfolio analysis service, grew by 81% on a constant currency basis to £14.7m over 12 months. This includes Investor Analytics, which was acquired in January 2016. StatPro launched its Revolution Performance module in September and one of its beta clients, National Australia Bank, has already gone live with eight of its clients on the platform. We are maintaining our forecasts, but given the recent contract momentum and weak sterling, we continue..."
Q3 2016 trading update in line | Statpro Group Plc | SOG
Progressive Equity Development, 19 October
"Following September’s successful launch of the StatPro Revolution Performance module, the Group has issued a brief trading update for Q3 2016; revenue and profits continue to be in line with the Board’s expectations and Annualised Recurring Revenue (ARR) for StatPro Revolution improved again. One of the beta clients, National Australia Bank, has gone live with eight end-clients – progress which was flagged at the investor presentation for the Performance module launch. Although not commented on in today’s announcement, we note that there have been notable currency..."
Great strides towards strategic goals | Avacta Group Plc | AVCT
Hardman & Co, 17 October
"Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a revolutionary alternative to the established antibody technology which dominates the drug industry despite its limitations. Avacta has made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. Meanwhile, its reagent business is continuing to deliver on three initial areas of strategic focus. There will be greater recognition of the long-term potential of..."
