Cambridge Index

Cambridge Index declines 0.7%

The Cambridge Index declined 0.7% or 123.1 points to 18,727.2, as seven out of the top ten index heavyweights saw their share prices fall over the week. Brokers were generally positive on the shares of ARM Holdings, down 0.4%, with price targets ranging from 980p to 1350p. BNP Paribas cut its rating on Johnson Matthey, down 4%, to “Neutral” from “Outperform”. Greene King, down 3.7%, has indicated that it intends to create an additional 2,000 apprenticeships in 2015. Deutsche Bank lowered its rating on CSR, down 0.2%, to “Hold”.
Bango rose 35.9%, despite announcing that its full year turnover declined to £5.1m, from £8.8m posted last year, while its loss before tax widened to £5.4m from £4.9m. The company projects that for 2015, end user expenditure from activations will grow by at least 100% to £65 million by the end of December. Domino Printing Sciences rose 28.9%, after Japanese firm, Brother Industries Ltd., announced that it will acquire the company for a cash consideration of about £1.03bn. In its final results for the year ended 31 December 2014, Cambridge Cognition Holdings, up 13.9%, indicated that its revenue rose to £5.8m from £4.2m in the preceding year and operating loss narrowed to £0.3m from £3m. The company’s diluted loss per share narrowed to 1.1p from 21.3p reported in 2013. Abcam, up 3.4%, announced that its revenues for the six months ended 31 December 2014, climbed to £66.7m from £62m recorded in the same period last year while profit after tax increased to £17.7m from £16.5m. The board proposed an interim dividend of 2.29p per share. Numis Securities maintained its “Buy” rating on the stock with a target price of 580p. However FinnCap reiterated its “Hold” rating on the company’s shares with a target price of 400p. Panmure Gordon reiterated its “Buy” rating on Brady, up 3.2%, with a target price of 100p.
Berenberg Bank reiterated its “Buy” rating on Aveva Group, down 2.1%, with a target price of 1977p. Horizon Discovery Group, down 3.1%, announced that it will be providing genomic Reference Materials to support Phase Two of Cancer Research UK’s Stratified Medicine Programme. However, financial details of the deal were not divulged. Panmure Gordon reiterated its “Buy” rating on the stock with a target price of 247p. Liberum Capital downgraded its rating on Kier Group, down 4.9%, to “Hold” from “Buy” with a target price of 1710p.
UK markets ended mixed last week as positive sentiment across Europe following the commencement of ECB’s bond buying programme was offset by weakness in energy stocks. The FTSE 100 index retreated 2.5% to 6,740.6, while the FTSE AIM 100 Index rose 0.6% to 3,201.1. The FTSE techMARK 100 Index gained 0.9% to 3,851.7.
US markets closed on a weaker footing in the previous week, amid continuing fears that the Fed’s interest rate hike is imminent. The DJIA index slipped 0.6% to settle at 17,749.3, while the NASDAQ Index declined 1.1% to 4,871.8.

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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Index movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, slumped 6.7% to 5.1p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, rallied 35.9% to 106.0p and emerged as the top gainer in the Cambridge Index. In its results for the full year ended 31 December 2014, the company stated that its turnover declined to £5.1 million, from £8.8 million posted last year. The company’s loss before tax widened to £5.4 million from £4.9 million registered previous year. Meanwhile, the company’s basic loss per share stood at 10.96p, compared to a loss of 10.53p reported last year. For 2015, the company projects end user expenditure from activations to grow by at least 100% to £65.0 million annualised run rate by end December.

Blinkx PLC

Blinkx PLC, the leading video search engine, declined 5.3% to 31.0p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, surged 13.9% to 86.0p. The company, in its final results for the year ended 31 December 2014, indicated that its revenue rose to £5.8 million from £4.2 million in the preceding year. Operating loss narrowed to £0.3 million, compared to £3.0 million. Loss net of tax shrunk to £0.2 million compared to £2.9 million. The company’s diluted loss per share narrowed to 1.1p from 21.3p reported in 2013. FinnCap restated its “Corporate” recommendation on the stock with a target price of 100.0p.

Cyan Holdings PLC

Cyan Holdings PLC, the integrated software solution provider for utility metering and lighting control, fell 7.4% to 0.3p and emerged as the top loser in the Cambridge Index.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, climbed 5.8% to 775.0p.

Domino Printing Sciences PLC

Domino Printing Sciences PLC, a provider of ink jet and laser technologies, soared 28.9% to 947.0p after Japanese firm, Brother Industries Ltd, announced that it will acquire the company for a cash consideration of about £1.03 billion, in an attempt to widen its industrial printing range. Investec reiterated its “Add” recommendation on the stock.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, dropped 4.9% to 1659.0p. Liberum Capital downgraded its rating on the stock to “Hold” from “Buy” with a target price of 1710.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, jumped 9.1% to 0.4p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, dropped 4.3% to 77.0p.

Other movers

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, climbed 3.4% to 488.3p. The company announced that its revenues for the six months ended 31 December 2014 climbed to £66.7 million from £62.0 million recorded in the same period last year while profit after tax widened to £17.7 million from £16.5 million. The company posted diluted earnings per share of 8.79p, up from 8.24p. Meanwhile, the board proposed an interim dividend of 2.29p per share, representing an increase of 7.5% over the last year. Numis Securities maintained its “Buy” rating on the stock with a target price of 580.0p. FinnCap reiterated its “Hold” rating on the company’s shares with a target price of 400.0p.

ARM Holdings PLC

Shares of chip maker, ARM Holdings PLC, lost 0.4% to 1186.0p. Credit Suisse maintained its “Outperform” rating on the stock with a target price of 1260.0p. Citigroup reiterated its “Buy” recommendation on the stock with a target price of 1350.0p. Deutsche Bank maintained its “Hold” rating on the stock. Morgan Stanley increased its target price on the stock to 980.0p from 900.0p and maintained its “Equal weight” rating. Berenberg Bank maintained its “Buy” recommendation on the stock with a target price of 1350.0p.

Aveva Group PLC

Engineering technology company, Aveva Group PLC, dropped 2.1% to 1459.0p. Berenberg Bank reiterated its “Buy” rating on the stock with a target price of 1977.0p.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, advanced 3.2% to 95.5p. Panmure Gordon reiterated its “Buy” rating on the stock with a target price of 106.0p.

CSR PLC

CSR PLC, engaged in designing single-chip wireless devices, edged 0.2% lower to 863.5p. Deutsche Bank lowered its rating on the company’s shares to “Hold”.

Greene King PLC

Shares of pub operator, Greene King PLC, fell 3.7% to 854.5p. The company has indicated that it would create additional 2,000 apprenticeships in 2015.

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, slipped 3.1% to 206.0p. The company announced that it will be providing genomic Reference Materials to support Phase Two of Cancer Research UK’s Stratified Medicine Programme. However, financial details of the deal were not divulged. Panmure Gordon reiterated its “Buy” rating on the stock with a target price of 247.0p. Beaufort Securities maintained its “Speculative Buy” recommendation on the stock.

Johnson Matthey PLC

Johnson Matthey PLC, a specialty chemicals company and leading provider of precious metal products and environmental technologies, retreated 4.0% to 3250.0p. BNP Paribas cut its recommendation on the stock to “Neutral” from “Outperform”.

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