Cambridge Index

13 March 2017

Archive

Cambridge Index eases 1.6%

The Cambridge index dropped 1.6% or 367.4 points to settle at 22,679.6, as the as the top three index heavyweights posted weekly losses to their share prices. DS Smith, down 1.3%, in its trading update, announced that the performance for the period since 1 November 2016 remained in line with the market expectations, with strong volume growth from the e-commerce businesses. The pan-European customer volume grew ahead of the average rate. Further, the Board anticipates the performance for the upcoming period to be in line with its medium-term financial targets. The stock was subject to mixed ratings from brokers. Berenberg initiated its “Hold” rating on Greene King, down 2.2%, with a target price of 700p. Abcam, up 3.4%, announced that its half-year revenue rose to £102.5m from £78.6m compared to previous year. The company’s profit before tax increased to £25.1m, from £20.9m in the same period. The Board approved an interim dividend of 2.8p per share payable on 13 April 2017. Peel Hunt reaffirmed its “Hold” rating on the stock with a target price of 750p. JPMorgan reissued its “Neutral” rating on the stock with a target price of 678p. Panmure Gordon restated its “Sell” rating on the stock with a target price of 640p. Peel Hunt reissued its “Buy” rating on Kier Group, down 0.1%, with a target price of 1600p.
1Spatial up 38.5%, in its business update, announced that Nicole Payne, the Group Financial Accountant, has been appointed as the Acting Finance Director. Also, as part of the restructuring process, they have sold the Enables IT's US business to its US operating management as a stand-alone business.
Vernalis, down 3.1%, announced that it has signed a new two-year partnership deal with Servier for oncology drug discovery. The company will receive a €2m upfront payment, on-going fees, bonuses for reaching research milestones and a share in the success of any further product. Panmure Gordon reaffirmed its “Buy” rating on the stock with a target price of 65p. Cambridge Cognition Holdings, down 6.9%, announced that it has launched a new web-based testing product to conduct online academic and clinical research studies. The CANTAB Connect software will now allow the researcher to assess participants remotely.
UK markets closed mostly higher in the last week. The Chancellor, Philip Hammond, revised his estimations of UK’s economic growth to 2% for the year from 1.4%, though indicated at a slow economic growth in the next year. Recent data showed the nation’s industrial and manufacturing production declined in the month of January. The FTSE AIM 100 index added 0.5% to close at 4,441, while the FTSE techMARK 100 index rose 0.6% to end at 4,463.6. However, the FTSE 100 index fell 0.4% to settle at 7,343.1.
US markets ended lower last week, amid indications by the US Federal Reserve Chairwoman regarding a possible interest rate rise in the coming week. As well as this the nation’s initial jobless claims unexpectedly rose for the week ended 4 March 2017. However, the US non-farm payrolls rose more than forecast in February. The DJIA index dipped 0.5% to end at 20,903, while the NASDAQ index eased 0.2% to close at 5,861.7.

Index Movers

1Spatial Holdings PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, rallied 38.5% to 2.3p and emerged as the top gainer in the Cambridge index. The company, in its business update, announced that Nicole Payne, the Group Financial Accountant, has been appointed as the Acting Finance Director. Moreover, the company stated that it has been awarded a full US patent for a method allowing any changes made to a database to be validated using logical business rules stored in a rules database. Also, it has sold the Enables IT's US business to its US operating management.

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, climbed 3.4% to 908.0p. The company, in its interim results for the six months ended 31 December 2016, announced that revenue rose to £102.5 million from £78.6 million reported in the same period a year ago. The company’s profit before tax increased to £25.1 million, compared to previous year’s profit of £20.9 million. The basic and diluted earnings per share stood at 9.8p compared to earnings of 8.4p in the previous year. The Board approved an interim dividend of 2.8p per share payable on 13 April 2017 to shareholders on the register at close of business on 17 March 2017. Peel Hunt reaffirmed its “Hold” rating on the stock with a target price of 750.0p. JPMorgan reissued its “Neutral” rating on the stock with a target price of 678.0p. Panmure Gordon restated its “Sell” rating on the stock with a target price of 640.0p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, declined 6.9% to 74.0p. The company announced that it has launched a new web-based testing product to conduct online academic and clinical research studies. The CANTAB Connect software will now allow the researcher to assess participants with disorders affecting the brain and central nervous system remotely. FinnCap Restated its “Corporate” rating on the stock with a target price of 115.0p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, slipped 4.7% to 2911.0p.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, fell 4.7% to 163.5p.

RhythmOne PLC

RhythmOne Plc (former Blinkx PLC), the leading video search engine, advanced 9.1% to 42.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, lost 5.0% to 1.0p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, jumped 16.7% to 192.5p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, dropped 9.9% to 337.0p, and emerged as the top laggard in the Cambridge index. N+1 Singer reiterated its “Corporate” rating on the stock.

Other Movers

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, slipped 1.3% to 443.5p. The company, in its trading update for the period since 1 November 2016, announced that the trading performance for the period remained in line with the market expectations with a strong volume growth from the e-commerce businesses. The pan-European customer volume grew ahead of the average rate. Further, the Board anticipates the performance for the upcoming period to be in line with its medium-term financial targets. Goldman Sachs reiterated its “Neutral” rating on the stock with a target price of 430.0p. JPMorgan Reaffirmed its “Overweight” rating on the stock with a target price of 475.0p. Numis Securities restated its “Add” rating on the stock with a target price of 495.0p.

Greene King PLC

Shares of pub operator, Greene King PLC, eased 2.2% to 676.5p. Berenberg initiated its “Hold” rating on the stock with a target price of 700.0p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, edged 0.1% lower to 1468.0p. Peel Hunt reissued its “Buy” rating on the stock with a target price of 1600.0p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, decreased 3.1% to 23.5p. The company announced that it has entered into a new two-year partnership deal with Servier for oncology drug discovery, under which the company’s proprietary fragment and structure-based drug discovery platform will be combined with the oncology expertise at Servier. The company will receive a €2.0 million upfront payment, fees, research milestones and a share in the success of any further product. Panmure Gordon reaffirmed its “Buy” rating on the stock with a target price of 65.0p.

Research and analysis for these reports has been conducted by Decimal Point Analytics Pvt. Ltd. on behalf of NW Brown Group.

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