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.

20 Sep 19

Stripe valued at $35bn, Datadog pops 39% on debut, Rivian big Amazon order

Stripe Inc said on Thursday it is raising $250 million in its latest funding round, which values the payments start-up at $35 billion, a dramatic 56% surge from a previous valuation at the start of the year. The latest valuation puts Stripe in the same league as home rental giant Airbnb Inc, which is also planning go public in 2020. Stripe has received strong positive feedback from our private FinTech contacts. Meanwhile, the IPO pipeline for 2020 is already heating up.

Companies: CALL TRAK BGO BOKU ECK EQLS LOOP NET QTX SEE TECH TCM TRCS

17 Sep 19

A wheel of fortune

These are exciting times for Bango as it matures and expands. After many years building merchant and carrier connections and volumes, the payment processing platform has reached profitability and will rapidly scale revenue on a fixed cost base. The data business is a natural evolution, driving greater payment volumes in a steadily accelerating virtuous circle; adding more data sources will spin it ever faster. Well-managed by an experienced team and uniquely positioned in a high growth industry, we launch coverage with the Interims in a seminal year: Bango is now fully funded and its revenues continue to grow rapidly, targeting breakeven this year and promising significant cash profits from next. We feel the market has yet to fully appreciate the exciting prospects for Bango and set a 225p target price.

Companies: Bango

16 Sep 19

Tech IPOs outperform, Uber’s great freight hope, New Huawei technology

Tech IPOs year to date have performed well. 8/13 venture-backed tech IPOs this year, including Slack's direct listing, are in profitable territory. If you'd put $1 million into each of them at the IPO price, your $13 million initial investment would be worth $21.7 million - a 67% gain compared to +20% performance in the S&P 500 YTD. As we’ve discussed earlier this month, investors’ appetite for technologies leveraging secular trends appears undiminished

Companies: TRAK CPX SEE QTX

17 Sep 19

The virtuous circle strategy continues to deliver

Bango has announced solid H1 2019A results in our view, with momentum remaining strong. At £467m, End User Spend (“EUS”) was confirmed as having more than doubled for a fifth consecutive year, and underlying opex levels remain broadly stable. A further highlight was the positive contribution from the data business, which now contributes over 25% of group revenue. We make revisions to FY 2019E earnings estimates following the release, noting, inter alia, Bango’s continuing commitment to investment in R&D to support its innovative product development. We also introduce FY 2020E forecasts for the first time which reflect the fruits of that investment.

Companies: Bango

16 Sep 19

TMT Update 16.09.19 (ECSC.L, CCT.L, MWE.L)

ECSC Group plc* (ECSC.L, 72.5p/£6.6m) Interims: Managed Serivces boosts margins; positive start to H2 (11.09.19) | The Character Group plc* (CCT.L, 360p/£77m) Pre-close update: Scandinavia disappoints (13.09.19) | MTI Wireless Edge Ltd* (MWE.L, 29.5p/£25.8m) Contract win: Scope for growth (16.09.19)

Companies: ECSC CCT MWE

18 Sep 19

Poised to perform

ZOO has delivered a strong AGM update, highlighting a solid performance in H1 to date, with profitability buoyed by high-margin technical work. The industry appears to be (albeit very slowly) establishing procurement platforms to build and manage the multiple new systems needed in the rush to direct-to-consumer models. We make no changes to forecasts, but look forward to further announcements during H2 and beyond.

Companies: Zoo Digital Group

18 Sep 19

Market share loss at key customers will leave H2 short

The Interims have been brought forward in light of a warning on H2. Quixant had previously flagged that 2019 would be heavily H2-weighted and H1 is weak but in line with expectations. However, a recent review of customer intentions reveals that H2 orders will not meet expected volumes. The global gaming machine market is still healthy but key customers (notably Ainsworth) have lost significant market share to Aristocrat in Australia and N. America. We cut our FY 2019 and FY 2020 forecasts; however, no customers have been lost and the concentration is much reduced while the long-term growth potential and cash generation remains strong.

Companies: Quixant

18 Sep 19

Facebook working on AR glasses, TransferWise revenue +53% YoY, WeWork debt price tumbles

Facebook has been working to develop augmented reality glasses out of its Facebook Reality Labs in Redmond, Washington, for the past couple of years, but struggles with the development of the project have led the company to seek help. Now, Facebook is hoping a partnership with RayBan parent company Luxottica will get them completed and ready for consumers between 2023 and 2025, according to people familiar. Needless to say, we highlight a potentially substantial threat to Snap Inc, and a potentially huge opportunity for developers within the Facebook ecosystem.

Companies: EVRH ESYS BGO BOKU EQLS IMMO SMRT TECH VRE

19 Sep 19

TV’s record what we watch, Comcast announces free streaming box, Huawei forecasts 5G revenue uplift

TVs have joined the ranks of websites, apps and credit cards in the lucrative business of harvesting and sharing user information. Whilst TV records may not contain sensitive search queries or financial data, they are able to store data on user interests, personality, joys and embarrassments, as tens of millions of users have given TV brands permission unknowingly. Many TV makers say tracking what users watch helps provide personalized recommendations. However, there is much belief that TV tracking is mostly about filling in a missing chunk of data which is only useful for advertisers and media companies.

Companies: 7DIG KAPE ZOO AMO EYE MIRA

18 Sep 19

Positive start to the year confirmed

Eckoh has released a short AGM statement, confirming good revenue growth in both the UK and US through the first five months of the year. The level of new business contracted so far is “encouraging” and the group is trading in line with our recently upgraded expectations. The shares trade on a FCF yield of 4.8% rising to 6.1% in FY’21 and we continue to be excited about the group’s growth prospects. With strong underlying momentum in both divisions, a large untapped opportunity in US Secure Payments, and excellent revenue visibility, we believe the shares are highly attractive.

Companies: Eckoh

27 Aug 19

Foreign buyers gorging on UK stocks

Like whales feasting on Krill, overseas firms are today stuffing themselves silly with choice fillets of corporate Britain. Why? Well look no further than geopolitical tensions and Brexit, which have disproportionately impacted UK equities and the £. Indeed the FTSE100 has lagged the S&P500 by a hefty 19% over the past 2 years, with Sterling dropping to 34 year lows vs US$ (see below). That said to us, based purely on fundamentals, this period of underperformance appears over-cooked, leaving many quality British companies vulnerable to predatory interest.

Companies: VOD AV/ AGK CHG CNA ITV BRBY SMIN CTEC SXS OXIG MGAM IMI WEIR WMH KMK EYE GATC ULS INS ALFA RDT TSTL ELCO MBH BLTG IHC 9537 CSRT NBI

05 Sep 19

Cenkos: Beeks Financial Cloud Group Plc - Final Results Update

Beeks Financial Cloud has announced full year results for period to 30 June 2019, with revenue up 32% to £7.35m and annualised monthly committed recurring revenue (ACMRR) also up 32% to £9.1m. Three Tier 1 financial services clients were signed during the year including a major insurance company, a global bank and a global investment management organisation. The number of institutional customers has increased to 220 from 192 in 2018, with the commencing entry level monthly average spend up 175% (to £2,200). Now beginning to establish itself within the large tier financial services market, we expect the number and scale of these relationships to be potentially transforming for Beeks. With our forecasts based on established growth trends, such potential could provide further upside to our forecasts and with the shares currently trading at 11.0x 2020E EV/EBITDA, 21x PE, PEG ratio of 0.54 (2020/21) and a prospective 0.9% yield, we remain buyers.

Companies: Beeks Financial Cloud

17 Sep 19

Cenkos: Rosslyn Data Technologies Plc - Almost covered

Positive operating cash flow in FY19A was a first for Rosslyn. A significantly expanded product set materially enlarges the opportunity for Rosslyn and projected revenue growth this year should leave the company close to fully recovering its cost base. A demonstrable self-sustaining model will be the key for a re-rating and Rosslyn is almost there. Buy.

Companies: Rosslyn Data Technologies

12 Sep 19

IQE - Executive interview

IQE’s CFO, Tim Pullen, discusses the company’s recent interim results and explains the operational measures IQE has put in place to support growth. He also explains why it is well placed to adapt to shifts in the global electronics supply chain being brought about by US/Chinese trade sanctions. With the infrastructure phase of the capacity-expansion programme nearing completion, he explains why future investment in capacity will be much more linear and discretionary, based on anticipated demand. As a result, supported by recent cost-control measures, the company expects to generate cash in H2. With an increased debt facility in place, management is confident it will not need to raise further capital. Tim ends by discussing how management sees margins evolving and how investors should view the timing of the company’s growth opportunities across multiple different applications.

Companies: IQE

23 Jul 19

Quarterly Research Outlook - Summer 2019

In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.

Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF

29 Aug 19

Executive interview - EMIS Group

19 Sep 19

ClearStar Interim results interview September 2019

30 Aug 19

Wameja (WJA) H1 2019 overview by John Conoley, Executive Chairman

19 Sep 19

Beeks Financial Cloud (BKS) FY results 2019 presentation

16 Sep 15

CentralNic Group - Half Year Results

23 Jul 19

Half Year Results 2019

12 Sep 19

Executive interview - IQE

07 Jun 19

Blancco - Capital Markets Day 2019 - Highlights Video

17 Sep 19

Bango plc: Investor video - Financial & operational update

05 Jun 19

SmartSpace Software (SMRT) Presentation at Mello May 2019

18 Sep 19

Attraqt (ATQT) H1 results September 2019

05 Jun 19

K3 Business Technology Group (KBT) Presentation at Mello May 2019

28 Mar 18

Seeing Machines - Site visit at Tramlink in Croydon

03 Jun 19

Executive interview – accesso

23 Nov 18

Forbidden Technologies (FBT) ShareSoc presentation November 2018

Latest Content

Statpro Group

StatPro Group - Recommended cash offer at 230p

StatPro has received a recommended all-cash offer at 230p per share (a 54.9% premium to the closing price) from Confluence Technologies, a private equity-backed (TA Associates) US-based provider of solutions to the global asset management industry. The offer is recommended by the board and supported by shareholders representing 65.2% of the shares. At the interims, management confirmed its focus on driving sales, having established the building blocks for growth (consolidation of the Revolution platform, new divisional structure) over the last few years.

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20 Sep 19
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Statpro Group

StatPro Group - Suspension of estimates

For the purposes of the Takeover Code, Edison Investment Research is deemed to be connected with SCISYS plc. Under Rule 20.1 Edison must not include any profit forecast, quantified financial benefits statement, asset valuation or estimate of other figures key to the offer, except to the extent that such forecasts, statements, valuations or estimates have been published prior to the offer period (as defined in the Takeover Code) by an offeror or the offeree company (as appropriate) in accordance with the requirements of the Code. Consequently we have removed our estimates until the Offer Period ends.

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20 Sep 19
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Parity Group

Transformation programme underway, modest profits but clear vision

H1 results from PTY this morning include the first months of the company’s transformation programme, which was initiated by new CEO Matthew Bayfield in February. Removal of a net £1.2m costs is a big win for the company at this stage in its development, while cost reductions have also paid for vital strategic investment. The new strategic model provides for a range of complementary activies (consulting, learning, development and strategic recruitment) focused on the world of data and supported by a single sales / marketing force. PTY retains a meaningful brand and is known as a leading expert in its field. Broader and deeper than originally anticipated, the restructuring of the business has thrown up opportunites while having the anticpated short-term impact on the business which is reflected in our forecasts; and the first signs of success are apparent with the focus on higher margin activities driven by a new team.

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20 Sep 19
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CALL TRAK BGO BOKU ECK EQLS LOOP NET QTX SEE TECH TCM TRCS

Stripe valued at $35bn, Datadog pops 39% on debut, Rivian big Amazon order

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20 Sep 19
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Beeks Financial Cloud

Beeks Financial Cloud (BKS) FY results 2019 presentation

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19 Sep 19

7DIG KAPE ZOO AMO EYE MIRA

TV’s record what we watch, Comcast announces free streaming box, Huawei forecasts 5G revenue uplift

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19 Sep 19
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Esker

Esker - Setting its sights higher

Esker reported another period of strong revenue and profit growth while continuing to invest in product development, consulting and sales & marketing resource. This policy of ongoing investment has fuelled double-digit revenue growth, 80% of which is recurring, over the last five years and supports the company’s premium rating. Progress towards the company’s stretching 20% revenue growth target should support further upside to the share price.

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19 Sep 19
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CLEARSTAR

ClearStar Interim results interview September 2019

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19 Sep 19

CLEARSTAR

Medical and direct sales continue to drive growth

The US-based provider of Human Capital Integrity technology-based services specialising in background and medical screening has released a strong set of Interim results; adj. EBITDA positive and well set to meet our FY growth forecasts. The ongoing sales growth continues to be driven by medical screening solutions and the provision of background checks to an expanding direct client base in the context of a very healthy US labour market. The strengthened direct sales team has been impressive, but in particular the medical business is offering a widening range of services to ever more customers in ever more industry verticals, utilising an increasing number of labs across the US. On that basis, we are lifting our sales forecast for the year but expect the additional margin to be reinvested to drive further growth in a buoyant market. We reiterate our 90p target, a 42% upside.