Cambridge Index

17 April 2017

Archive

Cambridge Index edges up 0.7%

The Cambridge index advanced 0.7% or 150.4 points to end at 22,863.9, as index heavyweights such as DS Smith, Greene King and Abcam posted weekly gains. Liberum Capital reiterated its “Hold” rating on Johnson Matthey, down 0.4%, with a target price of 3,400.0p. Panmure Gordon reaffirmed its “Sell” rating on Abcam, up 1.6%, with a target price of 680.0p. Peel Hunt reaffirmed its “Buy” rating on Kier Group, down 1.6%, with a target price of 1,600.0p.

RhythmOne, up 15.0%, in its trading update, announced that it expects financial and operating performance for the year ended 31 March 2017 to be in line with management expectations. Its total revenue for the second half of 2017 is expected to jump by 26% to $95.0m. Meanwhile, its full year revenue is anticipated to rise by 5% to $175.0m. It expects FY2018 to witness revenue growth and profitability from its core product lines. N+1 Singer reiterated its “Buy” rating on the stock with a target price of 65.0p. 1Spatial, up 10.3%, announced that it has taken full control over its US subsidiary 1Spatial Inc. by acquiring the remaining 27% shares for a total consideration of $0.918m. As a result, Mary Brauer-Cox will retire as the President of 1Spatial Inc. and will be replaced by Sheila Steffenson. Further, it has acquired the remaining 51% of Sitemap Limited for consideration of £0.2m. Consequently, it has issued 25.5m new ordinary shares for the two acquisitions. FinnCap reissued its “Corporate” rating on Netcall, up 3.2%, with a target price of 70.0p. N+1 Singer decreased its target price on Vernalis, up 1.0%, to 28.0p from 37.0p and maintained its “Hold” rating. N+1 Singer reaffirmed its “Corporate” rating on Xaar, up 0.1%.

CyanConnode Holdings, which remained unchanged at 0.2p, announced that it has won a new purchase order worth $0.15m from Innologix Consulting Private Limited to provide its smart metering software solution in India. Cantor Fitzgerald reissued its “Buy” rating on the stock with a target price of 0.7p. Beaufort Securities reaffirmed its “Speculative Buy” rating on the stock with a target price of 0.6p. FinnCap raised its target price on Quixant, down 0.2%, to 415.0p from 370.0p and maintained its “Corporate” rating. Barclays reiterated its “Equal Weight” rating on AVEVA Group, down 0.5%, with a target price of 1,450.0p. Sepura, down 9.8%, announced that the UK Department for Business, Energy & Industrial Strategy will commence a review of its acquisition with Hytera Communications through a Public Interest Intervention Notice and has requested the Competition and Markets Authority to check the relevance of the notice with respect to the acquisition.

UK markets ended mostly higher last week. On the data front, Britain’s ILO unemployment rate remained steady for the three months ended February while average earnings, excluding bonus, grew at its slowest pace in seven months. The FTSE techMARK 100 index rose 1.3% to finish at 4,495.0, while the FTSE AIM 100 index advanced 1.5% to end at 4,632.7. However, the FTSE 100 index eased 0.3% to settle at 7,327.6.

US markets traded lower in the previous week, following comments from the US Secretary of State, Rex Tillerson, indicating a low point in relationship between the US and Russia after his meeting with the Russian counterpart in Moscow. On the macro front, the US Reuters/Michigan consumer sentiment index unexpectedly advanced in April while advance retail sales for March dropped in line with market expectations. The DJIA index fell 1.0% to close at 20,453.3, while the NASDAQ index declined 1.2% to finish at 5,805.2.

Index Movers

1Spatial Holdings PLC

1Spatial PLC, the spatial big data company, climbed 10.3% to 4.0p. The company announced that it has taken over full control over its US subsidiary 1Spatial Inc. (former Laser Scan Inc.) by acquiring the remaining 27% shares for total consideration of $0.918 million. As a result, Mary Brauer-Cox will retire as the President of 1Spatial Inc. and will be replaced by Sheila Steffenson. Further, it has acquired the remaining 51% of Sitemap Limited for consideration of £0.2 million. Consequently, it has issued 25.5 million new ordinary shares for the acquisitions. N+1 Singer reissued its “Corporate” rating on the stock.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, fell 2.4% to 995.0p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, declined 3.9% to 305.0p.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, rose 8.3% to 14.6p.

Horizon Discovery Group PLC

Horizon Discovery Group PLC, the life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines, slid 7.1% to 195.0p.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, edged 3.4% higher to 152.5p.

RhythmOne PLC

RhythmOne Plc (former Blinkx PLC), the leading video search engine, surged 15.0% to 48.0p and emerged as the top gainer in the Cambridge index. The company, in its trading update for the year ended 31 March 2017, announced that it expects financial and operating performance for the year to be in line with the management expectations. Its total revenue for the second half of 2017 is expected to jump by 26% to $95.0 million from $75.3 million in the same period last year. Meanwhile, its full year revenue is anticipated to rise 5% to $175.0 million from $166.7 million reported in the previous year. In FY207, the company was able to achieve its three key objectives of a full year profitability, growth in core mobile, video & programmatic product lines and complete drawdown of Non-Core product lines. It anticipates FY2018 to witness revenue growth and profitability from its core product lines, through both organic efforts and scale acquisitions. N+1 Singer reiterated its “Buy” rating on the stock with a target price of 65.0p.

Science Group PLC

Science Group PLC (former Sagentia Group PLC), an international technology consulting and IP licensing firm, gained 4.0% to 184.0p.

Sepura PLC

Sepura PLC, a supplier of network-independent Terrestrial Trunked Radio terminals and digital radios, dropped 9.8% to 11.5p and emerged as the top loser in the Cambridge index. The company announced that the UK Department for Business, Energy & Industrial Strategy will commence a review of its acquisition with Hytera Communications through a Public Interest Intervention Notice and has requested the Competition and Markets Authority to check the relevance of the notice with respect to the acquisition.

Sphere Medical Holdings Ltd

Sphere Medical Holding PLC, a leading developer of innovative monitoring and diagnostic devices for the critical care setting, lost 1.9% to 6.5p.

Other Movers

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, lost 0.2% to 404.0p. FinnCap raised its target price to 415.0p from 370.0p on the stock and maintained its “Corporate” rating.

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, climbed 1.6% to 848.5p. Panmure Gordon reaffirmed its “Sell” rating on the stock with a target price of 680.0p.

Aveva Group PLC

Engineering technology company, AVEVA Group PLC, fell 0.5% to 1989.0p. Barclays reiterated its “Equal Weight” rating on the stock with a target price of 1,450.0p.

CyanConnode Holdings PLC

CyanConnode Holdings PLC, the integrated software solution provider for utility metering and lighting control, remained unchanged at 0.2p. The company announced that it has won a new purchase order worth $150,000 from Innologix Consulting Private Limited in India to provide its smart metering software solution. Innologix will integrate CyanConnode's software into its own cloud-based energy management solutions to create a platform to capture and store meter data. Meanwhile, Cantor Fitzgerald reissued its “Buy” rating on the stock with a target price of 0.7p. Beaufort Securities reaffirmed its “Speculative Buy” rating on the stock with a target price of 0.6p.

Johnson Matthey PLC

Johnson Matthey PLC, a speciality chemicals company and leading provider of precious metal products and environmental technologies, eased 0.4% to 3016.0p. Liberum Capital reiterated its “Hold” rating on the stock with a target price of 3,400.0p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, declined 1.6% to 1326.0p. Peel hunt reaffirmed its “Buy” rating on the stock with a target price of 1,600.0p.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, jumped 3.2% to 65.0p. FinnCap reissued its “Corporate” rating on the stock with a target price of 70.0p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, added 1.0% to 25.0p. N+1 Singer decreased its target price on the stock to 28.0p by from 37.0p and maintained its “Hold” rating.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, edged 0.1% higher to 371.3p. N+1 Singer reaffirmed its “Corporate” rating on the stock.

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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