Cambridge Index

Cambridge Index rises 2.2%

The Cambridge Index climbed 2.2% or 394.8 points to 18,638.5, as eight out of the top ten index heavyweights posted weekly gains. AlphaValue reiterated its “Sell” rating on ARM Holdings, up 3.9%, with a target price of 988p and reissued its “Sell” rating on Johnson Matthey, down 2.1%, with a target price of 3063p. DS Smith, up 5.8%, announced that it has agreed to acquire the Vienna-based packaging firm, Duropack, for around €300 million. JPMorgan Chase & Co increased its price target on the company’s stock to 380p from 360p with an “Overweight” rating. Berenberg Bank reiterated its “Hold” rating on the stock.
Tristel, up 12.8%, announced that its first half turnover increased by 15% year-on-year to £7.4m, while EBITDA jumped 25% to £1.5m. The company declared an interim dividend of 0.585p. In its interim results for the six months ended 31 December 2014, Kier Group, up 1.5%, announced that revenue climbed to £1,582.6m, compared to £1,432m in the corresponding period last year, while profit after tax increased to £21.2m, from £4.9m recorded in same period in 2013. The board has announced an interim dividend of 24p. Canaccord Genuity maintained its “Buy” rating on the stock with a target price of 2000p. Jefferies Group increased its target price to 2020p from 1770p and reiterated its “Buy” recommendation. Westhouse Securities also restated its “Buy” recommendation on the stock with a target price of 2110p. Vernalis, up 1.3%, announced that it has entered into a license agreement with an undisclosed US based biotechnology company, with an upfront payment of $1m. N+1 Singer and Oriel Securities reiterated their “Buy” recommendation on the stock with price targets of 87p and 63p respectively.
Numis Securities initiated coverage on Ubisense Group, unchanged at 96.5p, with a “Buy” rating and a target price of 186p. In half year results, Frontier Developments, down 5.4%, announced that revenues surged 44% year-on-year to £7.3m, driven by self-publishing pre-release sales. Meanwhile, pre-tax loss widened to £1.9m from £1.6m reported in the same period earlier year. Sareum Holdings, down 12.5%, in its half-year results for the six months ended 31 December 2014, announced that its loss before tax widened to £749,000, from £376,000 reported in the same period in 2013, mainly due to increased investment in its research programme. Separately, the company announced positive progress with its cancer and autoimmune disease research programmes. Netcall, down 13.6%, indicated that its group revenue for the six months ended 31 December 2014, increased 2% year-on-year to £8.6m while its adjusted EBITDA climbed 8% to £2.7m. FinnCap increased its target price on the stock to 80p from 75p.
UK markets ended firmer on the week, after Greece received a four-month extension to its bailout programme. The FTSE 100 index added 0.5% to 6,946.7, while the FTSE AIM 100 Index gained 0.4% to finish at 3,165.2. The FTSE techMARK 100 Index edged 1.2% higher to 3,798.1.
US markets closed higher in the previous week, after the US Fed Chief, Janet Yellen’s comments sparked hopes that the central bank would not raise rates imminently. The DJIA index ended flat at 18,132.7, while the NASDAQ Index added 0.2% to 4,963.5.

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

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, added 3.3% to 139.5p.

ARM Holdings PLC

Shares of chip maker, ARM Holdings PLC, advanced 3.9% to 1159.0p. AlphaValue reiterated its “Sell” rating on the company’s shares with a target price of 988.0p.

Bango PLC

Bango PLC, a developer and provider of technology for mobile phones, retreated 2.5% to 79.5p.

Blinkx PLC

Blinkx PLC, the leading video search engine, plunged 7.5% to 31.0p.

Domino Printing Sciences PLC

Domino Printing Sciences PLC, a provider of ink jet and laser technologies, jumped 4.2% to 769.5p.

DS Smith PLC

DS Smith PLC, a manufacturer and distributor of paper and plastic packaging products, surged 5.8% to 367.2p. The company announced that it has agreed to acquire the Vienna-based packaging firm, Duropack, for around €300.0 million. JPMorgan Chase & Co increased its target price on the company’s stock to 380.0p from 360.0p with an “Overweight” rating. Berenberg Bank reiterated its “Hold” rating on the stock.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, slumped 5.4% to 226.5p. The company, in its results for the half year ended 30 November 2014, announced that revenues surged 44% YoY to £7.3 million, driven by self-publishing pre-release sales. Meanwhile, pre-tax loss widened to £1.9 million from £1.6 million reported in the same period earlier year. FinnCap reiterated its “Corporate” rating on the company’s shares.

Netcall PLC

Netcall PLC, a provider of call-back, auto-messaging and contact solutions, fell 13.6% to 60.5p and emerged as the top loser in the Cambridge Index. The company indicated that its group revenue for the six months ended 31 December 2014, increased 2% YoY to £8.6 million while its adjusted EBITDA climbed 8% YoY to £2.66 million. FinnCap hiked its target price on the stock to 80.0p from 75.0p and maintained its “Corporate” rating.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, tanked 12.5% to 0.4p. In its half-year results for the six months ended 31 December 2014, the company announced that its loss before tax widened to £749,000, from £376,000 reported in the same period earlier year, mainly due to increased investment in its research programme. Separately, the company announced positive progress with its cancer and autoimmune disease research programmes.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, soared 12.8% to 83.5p and emerged as the top gainer in the Cambridge Index. The company, in its interim results for the six months ended 31 December 2014, announced that its turnover increased by 15% YoY to £7.4 million, while EBITDA jumped 25% YoY to £1.5 million. The company declared an interim dividend of 0.585p. FinnCap restated its “Corporate” rating on the stock with a target price of 85.0p.

Other movers

Johnson Matthey PLC

Johnson Matthey PLC, a specialty chemicals company and leading provider of precious metal products and environmental technologies, lost 2.1% to 3409.0p. AlphaValue reissued its “Sell” rating on the stock with a target price of 3063.0p.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, added 1.5% to 1742.0p. In its interim results for the six months ended 31 December 2014, the company announced that revenue climbed to £1,582.6 million, compared to £1,432.0 million in the corresponding period last year, while profit after tax increased to £21.2 million, from £4.9 million recorded in same period in 2013. The board has announced an interim dividend of 24.0p. The company has reiterated its full year guidance. Canaccord Genuity maintained its “Buy” rating on the stock with a target price of 2000.0p. Jefferies Group increased its target price to 2020.0p from 1770.0p and reiterated its “Buy” recommendation. Westhouse Securities restated its “Buy” recommendation on the stock with a target price of 2110.0p. Numis Securities maintained its “Buy” rating on the stock with a target price of 2125.0p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, ended flat to settle at 96.5p. Numis Securities initiated coverage on the stock with a “Buy” rating and a target price of 186.0p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, jumped 1.3% to 47.6p. The company announced that it has entered into a license agreement with an undisclosed US based biotechnology company, with an upfront payment of $1.0 million. N+1 Singer restated its “Buy” rating on the stock with a target price of 87.0p. Oriel Securities reiterated its “Buy” recommendation on the company’s stock with a target price of 63.0p. Canaccord Genuity maintained its “Buy” rating on the stock with a target price of 66.0p.

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