International Business Machines (IBM): New Analytics Offerings & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (02/23)

IBM delivered a strong result for the last quarter and managed an all-around beat as a result of excellent execution with respect to its AI and hybrid cloud strategy. It delivered decent revenue growth in its business across geographies, infrastructure segments, consulting, and software. Also, it produced new innovations in infrastructure with its Power and z16 platforms. The company added a series of innovative IBM software offerings in the AWS marketplace available as-a-Service. also, Red Hat

IBM Corporation: Acquisition-Led Growth In The Cloud Market & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

IBM delivered an all-around beat with over $14 billion in revenue and tremendous growth throughout the portfolio resulting in a sharp recovery in its stock price. Technology continues to be a key source of competitive advantage, and there is still a healthy market for hybrid cloud and AI solutions. Consistent double-digit revenue growth at IBM Consulting, satisfying client demand for digital transformations. The growth across all categories of software revenue performance was similarly impressiv

International Business Machines (IBM): The Databand Acquisition & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

As a legacy tech company, IBM may have seen a slowdown in its growth trajectory but its acquisition-led growth approach continues to work. The company has been trying to catch up to modern trends and a good example of the same was its move to acquire Databand, a startup developing an observability platform for data and machine learning pipelines. It is important to highlight that the company generated a strong set of results in the second quarter, surpassing Wall Street expectations in terms of

International Business Machines (IBM): The Mainframes Monopoly & Other Key Drivers, Financial Forecasts, DCF Valuation, ESG & Other Risks (05/22)

IBM has started the year on a positive note, with a double-digit growth in revenue from consulting reflecting solid performance all over the portfolio. Over the last few quarters, the recurring revenue is growing, renewal rates are increasing, and sales productivity is rising despite the impact of the war on the business from Russia. Recently, clients like the U.S Department of Education, Discover Financial, and Charles Schwab have chosen the hybrid cloud capabilities of IBM for digitally transf

International Business Machines (IBM) - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 2/22

IBM's ecosystem continues to gain traction and its core Consulting usiness saw double-digit revenue growth once again. The company generated $16.7 billion in revenue, a 58% operating gross margin, and $3.35 in operating earnings per share. The strength of Red Hat and its automation offerings is reflected in its software revenue growth. Infrastructure performed well in the recent quarters for IBM, particularly in terms of IBM Z and storage. In addition, they have expanded their partnership with E

International Business Machines (IBM) - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/26

IBM had a below-par result as it failed to meet market expectations causing a slight correction in the stock. If we exclude the upcoming spin-off of Kyndryl, the company’s revenue growth was around 2.5% for the quarter with many of its traditional businesses such as global financing and systems showing a negative growth. The systems division in particular has struggled given the cyclically lower sales of IBM Z and Power systems. IBM’s cloud and cognitive software revenues performed well and its

International Business Machines (IBM) - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation

IBM touched the target price from our last report before witnessing the recent selloff as the company reported one of the best quarters in years. It witnessed strong momentum in its cloud computing business gained through its Red Hat acquisition from back in 2019. Red Hat alone saw a 20% jump in the requirement for its cloud services and the company’s total cloud revenues were up 13% to $7 billion which is a very positive development. The management might also restructure the organization and sp

Morning Note – 20 May 2024

Morning Note – 21 May 2024

Intelligent Ultrasound Group - Defining the range

With the recent FY23 results, Intelligent Ultrasound stated the ‘business continues to expect revenue in 2024 to be between £14m to £17m’ and, importantly, that the company can ‘reach profitability with its current cash reserves’. In this note, we provide a scenario analysis of how Intelligent Ultrasound’s P&L statement could look if the company generated revenues of either £14m or £17m, compared to our current forecast of £15.6m. Most significantly, we believe that at the low end of the revenue

Morning Note – 22 May 2024

Growth vadis?

Plain sailing

PROGRESSIVE: Idox: Strong growth, again

The trading update for the half year ended 30 April is confident. First-half growth in revenues was over 20% year on year. The Emapsite acquisition has performed well. Cash generation has been impressive, with H1 net debt at c.£6.6m versus £14.7m at the FY23 year-end. The M&A pipeline is very healthy too. This strong performance is in line with management’s expectations, and the group expects to deliver to plan across the remainder of the year.

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Made Tech Group PLC

Made Tech is a leading provider of digital, data, and technology services to the UK public sector. The Group was founded in 2008 by Rory MacDonald (CEO), who remains its main shareholder with 28% of the equity, and IPO’d in 2021. The Group is entirely exposed to the UK public sector and we believe this represents a large structural growth opportunity as the shift to digital services is likely to accelerate. Moreover, we believe Made Tech will continue to benefit from the transition away from UK

Hybridan Small Cap Feast - 17 May 24

17th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Scirocco Energy (SCIR.L) has left AIM. UK Commercial Property REIT (UKCM.L) has left the Premium Segment of the Main Market. What’s baking in the oven? ** Potential**** Initial Public Offerings: 7th May: Time To ACT plc, an engineering business focused on tech

Morning Note – 31 January 2024

Hybridan Small Cap Feast - 21 May 24

21st May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to t

LSE AIM Market Screener - 22 June 2023

 The market capitalization of 806 AIM stocks was £89.3bn as of 20 June 2023. FTSE AIM All Share Index was down 5.55% YTD to 785.2 as of 21 June 2023. There were 32 companies delisted from AIM over the period December 2022-June 2023. Among the top YTD winners, there were Celadon Pharmaceuticals (up 209%, MktCap £95m), Vast Resources (+211% YTD, Mkt Cap of £15m), B90 Holdings (+200%, MktCap £22mn), Verditek (154%, MktCap £6mn), Star Phoenix Group (+162%, MktCap $1.6mn), Inspecs Group (+162%, Mk

GB Group - Termination of coverage

Edison Investment Research is terminating coverage on Doctor Care Anywhere (DOC), Argentex Group (AGFX), Newmont Corporation (NEM), GB Group (GBG), Abliva (ABLI) and TIE Kinetix (TIE). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

GetBusy - Strong progress through FY23, FY24E forecasts reiterated

GetBusy’s FY23 results show organic revenue growth of +10% to £21.1m, FY23 adjusted EBITDA +£0.1m ahead of our +£0.3m upgrade at the January trading update, and a promising outlook that leads us to reiterate our FY24E forecasts. At constant currency, ARR grew +10% yoy to £20.5m, recurring revenue grew +12% to £20.3m, and net revenue retention of 100.0% per month reflects upselling and price increases, with gross monthly churn of 0.8% per month vs 0.9% in FY22. Within SmartVault, the July 2023 la