See what's trending this week...
Companies: CML, FA/, FPO, FDEV, FUTR, IQE, KMK, PLUS, RRE, TSTL
Positive trading update. Already at our 2019 forecast profit run rate. | Liberum, 20 Nov
"The company has announced that it expects to beat current expectations, which were for $52m of EBIT in Q4. We also see the quiet appointment of the former IR of IG Group to an investor relations role at Plus500..."
Acquisition – material EPS accretion | finnCap, 19 Nov
"Tristel has acquired Ecomed (distributor for Benelux and France) for a maximum consideration of €6.8m (£6.0m), of which €5m is paid up front with the balance contingent on achieving a minimum of €0.8m of EBITDA in calendar year 2018 and revenue growth in excess of 15%. This is in line with the company’s strategy to have a direct sales presence in markets where possible..."
Frontier Developments (FDEV)
Buy ahead of the holiday season | Liberum, 21 Nov
"In this report we revisit the valuation of Frontier in the context of the recent share price underperformance and the expected strong trading across the holiday season, which should de-risk FY19 forecasts. The shares are back close to a sector multiple and our gaming franchise cash flow analysis suggests there is now very little in the price for Frontier’s future game releases..."
Capitalising on market transitions | Edison, 23 Nov
"IQE is benefiting from multiple megatrends as it supplies epitaxy for the photonics chips that transmit data in the volumes required for full adoption of the Internet of Things and provide the accurate visual information required for autonomous vehicles, Industry 4.0, augmented reality and virtual reality..."
Rockrose Energy (RRE)
Results of tender offer | Whitman Howard, 23 Nov
"Yesterday RockRose announced that 95.2% of the Tender Offer was subscribed. The total value of all shares purchased is £16.4m. Updating our model for the results leaves our RENAV broadly unchanged at 1431p. As per our Initiation in early November, we believe RockRose offers investors compelling upside, and reiterate our BUY recommendation..."
Fireangel Safety Technology (FA/)
2018 tougher still but on track for 2019 | Stockdale, 22 Nov
"While FireAngel’s trading update is disappointing in that 2018 forecasts have been reduced again, it is more encouraging that orders have started to come through and we are making no changes to our 2019E or 2020E forecasts..."
All systems go | Edison, 23 Nov
"Future has delivered a very good set of FY18 numbers – better than the upgrades put in place with the September update. This came through both the acquisitions and the organic growth as the group leverages its platform, with Media showing organic growth of 40%. There is plenty still to go for and we have again raised our FY19 expectations and published indicative FY20e forecasts..."
Kromek Group (KMK)
New OEM contract | Cenkos, 19 Nov
"A new baggage screening contract with an existing OEM customer further reinforces revenue visibility for 2019E. Kromek is maintaining its trajectory towards cash flow breakeven next year. This reflects the increasing maturity of its marketplace which is at odds with the share price, trading at the bottom of its range for the year..."
First Property Group (FPO)
HY19 Interims | Arden, 22 Nov
"First Property has announced its HY19 interim results, reporting a c.21% increase in adj. NAV to 62.2p and a c.5% increase in dividend. The increase in NAV was mainly attributable to the valueuplift achieved on the refinancing of Krakow Business Park earlier this year, a strong reflection of the company’s active approach towards managing its assets. While the adjusted NAV was ahead of our originally forecasted 59.2p for the full year, we note this was due to a lower than anticipated share count, which we now update for..."
CML Microsystems (CML)
Solid performance | Cenkos, 20 Nov
"Flash memory capacity shortages have impacted CML's customers' delivery patterns but management has diligently guided the market over the past 12 months and steered the business through difficult waters to deliver solid interim earnings. The stock is on track to make our full year earnings estimate and the share price has overly discounted a risk that has been well contained, in our view..."