Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RENISHAW PLC. We currently have 15 research reports from 2 professional analysts.
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Q117 update; 7% organic revenue growth
13 Oct 16
Renishaw has developed world-leading market positions built on patented technology, and mediumterm growth should be sustainable as the global manufacturing industry looks to upgrade into state-of-the-art manufacturing systems with additive manufacturing, robotics, etc. likely to be strong growth drivers.
N+1 Singer - Capital Goods - Backdrop suggests upgrades ahead
09 Sep 16
Our latest review of the UK capital goods sector suggests a more positive outlook for our stocks, echoing the more hopeful picture we identified at the start of the year (Best Ideas 2016, 4 January). While growth remains very low, key indicators suggest a slight improvement for our universe by the end of 2016. More significantly, weak sterling is set to provide a materially bigger boost to sales in H2 than in H1 if FX rates are maintained. This does not appear to be reflected in consensus forecasts, which have also seen their first quarterly upgrade in Q3 to date after four years of quarterly downgrades. Share prices have risen sharply through 2016, taking our weighted sector P/E to c.20x. However the sector does not look expensive relative to the market, trading on its normal premium to the FTSE All-Share. To identify the best prospects we have assessed end market commentary from overseas capital goods groups, track records of growth and introduced quant screens relating to profitability and cash generation. Given the more positive tone to our findings, we have a number of Buy recommendations, but only one Sell. In this note we summarise the main inputs into our sector view, along with overviews of our coverage and some interesting non-coverage stocks.
N+1 Singer - Morning Song 09-09-2016
09 Sep 16
Summit continues to make strong progress with its utrophin modulation and C. difficile infection (CDI) programmes. Ezutromid has commenced a Phase II proof-of-concept trial (PhaseOut DMD) in the UK, with the first muscle biopsy data expected Q2/Q3 2017. A placebo controlled trial is expected to start in H2 2017, assuming positive interim data from the PhaseOut DMD trial. Ridinilazole Phase III options are currently being evaluated for CDI and we expect an update later in the year. We remain positive on the group’s future prospects and its significant market potential.
N+1 Singer - Morning Song 27-07-2016
27 Jul 16
Vp has confirmed a positive start to FY17, following a record performance in FY16, and the Board anticipates making further good progress this year. Vp’s share price has displayed some volatility since the EU referendum, but today’s update should reassure. The business performance year to date is described as encouraging and there has been no impact on trading following the Brexit vote. We remain confident in our forecasts, noting the supportive market environment and underpinning from recent acquisitions Higher Access and TR Pty, which expanded the Group’s international activities in Asia Pacific. Vp has an excellent track record of delivering sustainable earnings and dividend growth and it has consistently outperformed its turbulent peer group by a considerable distance. In our view, the current year P/E rating of just 10x represents an attractive entry point.
N+1 Singer - Renishaw - More positive prospects, but in the price
26 Jul 16
We have updated our forecasts for Renishaw ahead of the FY16 results tomorrow, as per our indications at the time of the Q3 update. Looking ahead, our FY17 PBT forecast of £85.0m assumes modest improvement in underlying growth and an increased sales contribution from irregular orders, supplemented by a material FX tailwind. We now expect a return to more positive news flow and momentum from Renishaw, and have increased our target price from 1905p to 2026p driven by higher sector multiples. However we believe this improved outlook is already more than reflected in the share price. Consequently we retain our Sell recommendation.
N+1 Singer - Morning Song 26-07-2016
26 Jul 16
Yesterday we hosted our first “speed dating” lunch at our offices with the management teams of three interesting and contrasting companies. Each has featured in one of our recent Microcap Uncovered Gems notes and/or other sector and quant work. Each company gave a punchy and brief overview of its business and investment case to a group of fund managers before rapid fire Q&A. Below we summarise our own thoughts on easyHotel, Hayward Tyler and Plastics Capital and inside we give more information on these companies including recent slide decks. We believe all three companies are very well managed and deserve a close look. We will repeat this efficient format for engaging with managements in due course.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.