Technology

Technology equity research

Explore the most viewed and latest equity research and media content for companies within the Technology sector. Stocks in this sector focus on IT Services, Web Development, Software Development, and IT hardware.

Technology equity research

Stocks in this sector focus on IT Services, Web Development, Software Development, and IT hardware.

31 Jul 17

N+1 Singer - IQE - VCSEL ramp up just the start

IQE’s trading update confirmed that it has secured multiple, multi-year contracts for VCSEL wafers, which we believe relate to 3D sensing opportunities, the most high profile of which is the 10th anniversary iPhone. We are upgrading our FY’17/’18/’19 EPS forecasts by 5%/6%/10% respectively however we believe these forecasts remain very conservative. Assuming a more optimistic level of adoption for the expected new iPhone results in a bull case scenario of 81% EPS upgrades in FY’18. IQE is one of our Key Buys for 2017, a stance which has served us well so far (+185% YTD). With forecasts conservatively struck and multiple additional near-term opportunities outside of Apple on the horizon, we believe the shares will continue to perform. We increase our target price to 147p and retain our Buy recommendation.

Companies: IQE

12 Jul 17

AIM – End of summer term report

We update this table which we first published in early January and highlight the continued progress of the biggest AIM companies so far this year and activity in general. The latest AIM Statistics show that there are 963 companies currently, with 28 new issues year to date raising £441m. What’s more, this momentum has been maintained since June. This demonstrates that despite, the uncertainty surrounding the UK economy, generally investors continue to be active in the AIM market. In Share News & Views we comment on Cohort, ECSC*, Porvair, Quarto*, SQS* and Xafinity.

Companies: BMS CRPR ECSC EUSP FDM PCF PPIX QRT SNX SPRP SQS TCN W7L

14 Aug 17

N+1 Singer - PROACTIS Holdings - Perfect Commerce makes perfect sense

We have upgraded our forecasts following the completion of the acquisition of Perfect Commerce for up to $132.5m. This transformational deal positions the enlarged PROACTIS group as the sixth largest pure-play provider of ePurchasing solutions globally, as well as one of the fastest growing and most profitable. The commercial and operational synergies arising from this combination are considerable and warrant the acquisition multiples paid (max. 3.4x est. FY 2018 revenue and 19.0x est. EBITDA). Our FY 2018 group revenue, EBITDA and EPS estimates increase by 105%, 119% and 18% respectively. We raise our target price from 201p to 226p and reiterate our Buy recommendation.

Companies: Proactis

26 Jul 17

Start of mass market VCSEL ramp-up

IQE’s pre-close trading update notes a 16% year-on-year increase in wafer revenues in H117, driven by strong double-digit growth in photonics and currency tailwinds. Importantly, the photonics growth heralds the start of a mass-market ramp up in VCSEL (vertical cavity surface emitting laser) wafers for consumer applications, encouraging management to proceed with plans to substantially expand capacity ahead of anticipated demand in H218. We make modest upwards revisions to our estimates, noting the potential for further upgrades as there is greater clarity on photonics volumes.

Companies: IQE

09 Aug 17

Cadmium to be prohibited from October 2019

Proposed amendments (subject to ratification) to the Restriction of Hazardous Substances Directive (RoHS) by the European Commission recommend a two-year more restrictive extension to the exemption of cadmium in quantum dot displays, subsequent to which the use of any cadmium in electronic devices sold within the EU will be banned. The use of cadmium in lighting products will be prohibited with immediate effect. The judgement has little impact on our investment thesis, as we believe that commercial factors for cadmium-free adoption are already strong.

Companies: Nanoco Group

07 Aug 17

New records galore

The past fortnight has seen a number of records broken in the technology sector, both in the UK and abroad. FDM* share price set a record, going past the £10 mark, after beating market expectations. Sage made its biggest ever acquisition. Samsung set a record for net profit in a quarter, making it the world’s most profitable company. Apple’s cash pile grew to a record US$262bn. Google’s record US$2.7bn fine meant it had a rare decline in profitability. GetBusy* had a strong debut on AIM, increasing 22% on its first day, adding to the track record of recent tech company listings in London.

Companies: BBSN ECSC EUSP FDM PPIX QRT SPRP SQS SNX

09 Aug 17

Summertime, and the livin’ is easy?

In the middle of the holiday season, when in theory the livin’ is easy, far from taking a breather, markets have continued to rise. All major indices are close to all-time highs. Although the Brexit picture is no clearer, share prices continue to make headway. Both M&A and new issue activity remains to the fore. In contrast, the latest snapshot of the economy shows increasing signs of a slowdown. The reporting season continues apace which will set the near term direction. In Share News & Views, we comment on recent results/news from AdEPT, Clipper Logistics, FDM*, GetBusy*, Quarto* Sprue* and Staffline.

Companies: BMS CRPR ECSC EUSP FDM PCF PPIX SNX SPRP SQS TCN W7L

20 Jul 17

N+1 Singer - IQE - Photonics ramp up begins in earnest

IQE’s H1’17 trading update confirms a strong first half, with multiple photonics programmes ramping up, which should deliver very strong growth in Photonics revenue in future periods. The group has confirmed that it has secured multiple, multi-year contracts for VCSEL wafers, which we believe relate to 3D sensing opportunities, the most high profile of which is the 10th anniversary iPhone. In order to deliver the expected increase in demand, the board has authorised a capacity expansion plan, which initially includes c.£15m of tools orders. The group has also agreed heads of terms for the lease of new premises in South Wales with the Cardiff City Region. IQE is one of our key picks for the year and we believe the group is in the very early stages of a significant ramp up in Photonics. Management are guiding to modest upgrades in FY’17 and FY’18 this morning, however we believe that eventual EPS upgrades to the FY’18 exit run rate could be closer to 75% (40% on a full taxed basis).

Companies: IQE

22 Mar 17

iRobot

We are positive on the impact of software bots on productivity, and therefore long term GDP. We are buyers of Blue Prism, one of the clear world leaders in this emerging high growth space.

Companies: Blue Prism Group

13 Dec 16

Fovio strategy shift opens equity opportunity

In a change of plan, the Board is raising £17m (a £15m placing and £2m open offer) from equity investors to fund and benefit fully from the automotive OEM rollout of its leading-edge technology. This will ensure existing investors retain full ownership and control of the IP.

Companies: Seeing Machines

14 Aug 17

Ticking along nicely

Prelims to June are in line with expectations, with sales and adj. net income up 8% and 24% respectively. Cash conversion was also typically robust at 181% (FCF/adj. PAT), resulting in year-end net cash of £2.6m. We leave FY18 forecasts essentially unchanged – suggesting top-line growth of 9% and, in combination with continuing margin expansion, EPS +13%. Maiden FY19 forecasts reflect a continuation of this theme and form the basis of our valuation methodology and as such, we increase our target to 85p – equivalent to an undemanding 8% FY19E FCF yield.

Companies: Arcontech Group

10 Aug 17

N+1 Singer - StatPro Group - Contract to migrate client from Seven to Revolution

StatPro has announced a $1.0m, two and a half year contract extension to migrate an existing asset management client in Singapore from StatPro Seven to StatPro Revolution. This deal indicates that Seven users are progressively recognising the value of the cloud-based Revolution platform and, while no conversion premium is explicitly stated in this instance, are prepared to pay up for it. We would like to see new sales hires accelerate organic growth but continue to see scope for significant upside given the size (£53m) and quality of the recurring revenue base.

Companies: Statpro Group

27 Jun 17

Software licence margins deliver H2 profits

The FY 2017 results were in line with April’s post year-end guidance; impressive c.20% earnings growth despite a 5% reduction in revenue. In H2, some Project revenues were delayed by political uncertainty in the US and company-specific issues at a high-profile Japanese client. Instead, H2 profit was driven by the data gathering and analysis business offering exceptional margins; on the growth of Celebrus licence fees in particular. We expect to see the delayed projects flow into the current year, delivering strong revenue growth but reducing gross margin to usual c.50% levels. Resulting EPS progression is likely to be mitigated by a higher tax charge this year; however we are excited by huge potential of the data analytics offering which now generates >84% of revenues. The recent tie-up with Microsoft could see the US giant offering Celebrus to its global client base with significant upside potential. We caution the relationship is very new and at this stage we temper our expectations and forecasts with prudence.

Companies: D4T4 Solutions

28 Jul 17

Guardian accelerates through H2

The computer vision based human sensing technologies developer has issued one of its regular updates on progress in the fleet retrofit operations (Guardian). Following the sale of the off-road operations to CAT, this business is core to providing revenue while the Automotive OEM business gains traction over the next few years. The unit has performed impressively, adding A$13m of Total Contract Value (TCV) in Q4 to make A$29m signed in the year and $36.5m cumulatively. These are generally under 3 or 5-year contracts, therefore underpinning future revenue expectations. Guardian now has 130 fleet customers globally, including the US and UK, with more expected imminently. A FY 2017 update for the wider group will be available in August.

Companies: Seeing Machines

27 Jun 17

Blue Prism Interim Results ahead of expectations upgrades to revenues, Buy, PT 946p

PRSM has announced interim results for half year to end April. Revenues came in at £9.3m vs our expectation of £8.2m, this was 133% YoY growth. EBITDA loss at £2.7m was in line as they continue to reinvest heavily in the business. Monthly Recurring Revenue exited the period with a run rate of £1.72m, again ahead of our expectations, up from £0.95m at the year end and up from £0.66m at the previous half year. Recurring revenue was 91% up from 83%.

Companies: Blue Prism Group

27 Mar 17

Executive Interview - IQE

05 Jun 17

Dillistone Group - Trading and New Product Update

29 Sep 16

Executive Interview - IQE

22 May 17

Executive Interview - Reworld Media

02 Feb 17

FreeAgent - Company update 2017

15 May 17

Capital Network's Ed Stacey on BOS Global's 'huge potential growth'

04 Apr 17

Nanoco - Interim Results

03 May 17

Proactis (PHD) H1 Results investor presentation April 2017

05 Apr 17

Executive Interview - Nanoco Group

26 Apr 17

Dillistone Group - Full Year Results 2017

24 Feb 17

idox plc (IDOX) Investor presentation February 2017

15 Mar 17

Executive Interview - EMIS Group

13 Jul 17

Proxama (PROX) Proposed Placing. CEO John Kennedy Interview

14 Mar 17

Bango Final Results

11 Apr 17

Accesso Investor Overview

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16 Aug 17
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15 Aug 17
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Proactis

N+1 Singer - PROACTIS Holdings - Perfect Commerce makes perfect sense

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14 Aug 17
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Arcontech Group

Ticking along nicely

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14 Aug 17
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Savannah Resources Arcontech Group

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Arcontech* (ARC): Ticking along nicely (CORP) | Savannah Resources* (SAV): Progress in Mozambique (CORP)

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14 Aug 17
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Breakfast Today

MySQUAR Limited (MYSQ.L) | Prospex Oil & Gas (PXOG.L) | Thor Mining (THR.L) | Ibstock (IBST.L)

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11 Aug 17
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United Internet

Attention – massive road works ahead!

In Q2`17 adjusted revenues excluding the subsidiary affilinet increased by 5.7% to €1.0bn. EBITDA jumped 10.3% to €216.9m and EBIT increased 7.3% from €148.6m to €159.4m. The EBITDA margin improved from 20.8% to 21.7% and the EBIT margin from 15.7% to 15.9%. According to our calculation, the EBIT margin improved from 15.2% to 15.5%. Net income after minorities increased from €4.5m to €7.9m. In Q2`16 the company wrote-off financial assets of €98m (Rocket Internet) and €254.9m alone in the first half year 2016. In the first half of the current year revenues increased by 3.9% to €1.95bn an,d including affilinet, by +2.2%. Strato AG contributed €31.7m to revenues which were offset by regulatory effects of around €23.7m. EBITDA grew 8% to €429.9m of which Strato already contributed €13.1m.

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11 Aug 17
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Statpro Group

N+1 Singer - StatPro Group - Contract to migrate client from Seven to Revolution

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10 Aug 17
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N+1 Singer - Morning Song 10-08-2017

Cineworld Group (CINE LN) Blockbuster interims – upgrading back to Buy | Hill & Smith Holdings (HILS LN) Positive H1 | StatPro Group (SOG LN) Contract to migrate client from Seven to Revolution

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