Cambridge Index

Cambridge Index declines 5.6%

The Cambridge Index dropped 5.6% or 1,060.4 points to 17,965, as eight out of the top ten index heavyweights posted weekly losses. Sanford C. Bernstein reiterated its “Market Perform” rating on ARM Holdings, down 10.2%, while BNP Paribas maintained its “Outperform” recommendation on the stock with a target price of 1300p. BNP Paribas reiterated its “Neutral” rating on Johnson Matthey, down 0.9%, with a target price of 3300p. JPMorgan Chase maintained its “Overweight” recommendation on the stock with a target price of 3800p. CSR, up 1.4%, announced that the Japan Fair Trade Commission has approved its acquisition by Qualcomm Global Trading Pte. Ltd., an indirect wholly owned subsidiary of Qualcomm Inc.
In its trading update, LPA Group, up 15.7%, announced that it has won a contract worth around £5.0m to supply equipment for use in London’s Crossrail railway. The company also announced that it has finalised terms of the Framework Agreement with Hitachi to supply electro-mechanical equipment and LED-based lighting for the Intercity Express Programme. In its results for the year ended 31 December 2014, Quixant, up 4.4%, announced that its revenue rose to $31.9m from $24.2m reported last year, while its operating profit climbed to $7.1m, from $6.0m in 2013. Numis Securities reiterated its “Buy” rating on the stock with a target price of 190p. Cyan Holdings, up 4.3%, announced that it has signed a non-exclusive distribution agreement with XLink Communications (Pty) Ltd to distribute Cyan’s smart metering and lighting solutions as well as related Internet of Things applications in South Africa. Gaming Realms, up 3.5%, indicated that it generated revenue of £11.2m for the 15 months ended 31 December 2014, compared to £0.9m in 2013, while it posted an adjusted EBITDA loss of £8.2m for the period compared to a loss of £2.3m. Additionally, the company has reported early success of a proprietary platform which was introduced by Bear Group Limited, the subsidiary of Gaming Realms, in September 2014. Brady, up 3.3%, announced that it has made an application for 62,950 new ordinary shares of 1.0p each to be admitted to trading on AIM. It is expected that admission will take place on 30 March 2015. FinnCap raised its rating on Xaar, up 3.1%, to “Buy” from “Hold” with a target price of 500p. Canaccord Genuity initiated coverage on Amino Technologies, up 0.4%, with a “Buy” rating and a target price of 270p.
Horizon Discovery Group, down 5.0%, announced that a group led by the Centre for Process Innovation on behalf of UCB Celltech and Lonza Biologics and including Horizon as a full partner, has been awarded £6.2m as part of the Advanced Manufacturing Supply Chain Initiative. Additionally, the company announced that it has signed an Original Equipment Manufacture deal with ArcherDX Inc. to aid customer validation of its ALK fusion assay kits. N+1 Singer and Panmure Gordon have maintained their “Buy” recommendation on the stock.
UK markets ended mostly in the red last week, amid renewed geopolitical turmoil in the Middle East. The FTSE 100 index declined 2.4% to 6,855.0, while the FTSE AIM 100 Index added 0.1% to finish at 3,210.2. Also, the FTSE techMARK 100 Index retreated 3.1% to finish at 3,781.7.
US markets closed in negative territory in the previous week, as geopolitical fears in the Middle East resurfaced. Also, uncertainty related to the stance of the Federal Reserve on interest rates led to volatility. The DJIA index declined 2.3% to 17,712.7, while the NASDAQ Index dropped 2.7% to 4,891.2.

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


topImage2B9E79CA-5254-002B-DB8C8B3835D59DF3.jpg

sideImage2B9F41FD-5254-002B-DB8C8066EB1D6E4C.jpg

sideImage2B9FE05C-5254-002B-DB8C3DB8500A3D01.jpg

Index movers

ARM Holdings PLC

Shares of chip maker, ARM Holdings PLC, plummeted 10.2% to 1079.0p. Sanford C. Bernstein reiterated its “Market Perform” rating on the stock. BNP Paribas maintained its “Outperform” recommendation on the stock with a target price of 1300.0p. Citigroup reiterated its “Buy” rating on the stock with a target price of 1315.0p.

Cyan Holdings PLC

Cyan Holdings PLC, the integrated software solution provider for utility metering and lighting control, gained 4.3% to 0.2p. The company announced that it has signed a non-exclusive distribution agreement with XLink Communications (Pty) Ltd to distribute Cyan’s smart metering and lighting solutions as well as related Internet of Things applications in South Africa. Beaufort Securities reiterated its “Speculative Buy” recommendation on the stock.

Elektron Technology PLC

Elektron Technology PLC, a provider of fast moving engineered products, tumbled 16.6% to 4.4p and emerged as the top loser in the Cambridge Index.

Gaming Realms PLC

Gaming Realms PLC (former PDX PLC), an online gaming operator, developing free-to-play and real-money products, rose 3.5% to 33.0p. The company indicated that it generated revenue of £11.2 million for the 15 months ended 31 December 2014, compared to £0.9 million in 2013, while it posted an adjusted EBITDA loss of £8.2 million for the period compared to a loss of £2.3 million. Additionally, the company has reported early success of a proprietary platform which was introduced by Bear Group Limited, the subsidiary of Gaming Realms, in September 2014.

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, declined 5.0% to 208.5p. The company announced that a group led by the Centre for Process Innovation on behalf of UCB Celltech and Lonza Biologics and including Horizon as a full partner, have been awarded £6.2 million as part of the Advanced Manufacturing Supply Chain Initiative. Additionally, the company announced that it has signed an Original Equipment Manufacture deal with ArcherDX Inc. to aid customer validation of its ALK fusion assay kits. N+1 Singer maintained its “Buy” recommendation on the stock with a target price of 246.0p. Beaufort Securities reiterated its “Speculative Buy” rating on the stock. Panmure Gordon reiterated its “Buy” rating on the stock with a target price of 247.0p.

LPA Group PLC

LPA Group PLC, a provider of electronic and electro mechanical systems, rallied 15.7% to 73.5p and emerged as the top gainer in the Cambridge Index. In its trading update, the company announced that it has bagged a contract worth around £5.0 million to supply equipment for use in London’s Crossrail railway. The company also announced that it has finalised terms of the Framework Agreement with Hitachi to supply electro-mechanical equipment and LED-based lighting for the Intercity Express Programme.

Quixant PLC

Quixant PLC, a provider of specialised gaming platforms designed for gaming and slot machine applications, advanced 4.4% to 154.5p. In its final results for the year ended 31 December 2014, the company announced that revenue increased to $31.9 million from $24.2 million reported in the last year, while its operating profit rose to $7.1 million, compared to $6.0 million recorded in 2013. The company’s profit after tax advanced to $6.1 million, compared to $4.8 million posted in the prior year. The company proposed a full year dividend of 1.20p/share, compared with 1.00p/share paid in the previous year. Numis Securities Ltd. reiterated its “Buy” rating on the stock with a target price of 190.0p.

Sareum Holdings PLC

Sareum Holdings PLC, which is engaged in the structure-based drug discovery business, slumped 5.7% to 0.3p.

Tristel PLC

Tristel PLC, a provider of infection control and water treatment products, dropped 5.4% to 72.9p.

Ubisense Group PLC

Ubisense Group PLC, a market leader of real-time location solutions, jumped 5.1% to 104.0p.

Other movers

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, added 0.4% to 140.0p. Canaccord Genuity initiated coverage on the stock with a “Buy” rating and a target price of 270.0p.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, climbed 3.3% to 101.3p. The company announced that it has made an application for 62,950 new ordinary shares of 1.0p each to be admitted to trading on AIM. It is expected that admission will take place on 30 March 2015. Separately, the company indicated that it has made an application for 290,250 ordinary shares of 1.0p each to be admitted to trading on AIM. Admission of these shares will occur on 27 March 2015.

CSR PLC

CSR PLC, engaged in designing single-chip wireless devices, edged 1.4% higher to 875.0p. The company announced that the Japan Fair Trade Commission has approved its acquisition by Qualcomm Global Trading Pte. Ltd., an indirect wholly owned subsidiary of Qualcomm Inc.

Domino Printing Sciences PLC

Domino Printing Sciences PLC, a provider of ink jet and laser technologies, lost 0.4% to 935.0p. The company affirmed that as on 26 March 2015, it had 112,658,171 ordinary shares of 5.0p each in issue and admitted to trading on the main market of the LSE under the ISIN GB0002748050. Separately, the company has made an application for listing 200,000 ordinary shares of 5.0p each. The above shares will rank pari passu in all respects with the existing issued ordinary shares in the company.

Johnson Matthey PLC

Johnson Matthey PLC, a specialty chemicals company and leading provider of precious metal products and environmental technologies, slipped 0.9% to 3360.0p. BNP Paribas reiterated its “Neutral” rating on the stock with a target price of 3300.0p. JPMorgan Chase maintained its “Overweight” recommendation on the stock with a target price of 3800.0p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, gained 3.1% to 408.0p. FinnCap raised its recommendation on the stock to “Buy” from “Hold” with a target price of 500.0p. Investec upgraded its rating on the company’s shares to “Add” from “Sell” and increased its target price to 415.0p from 265.0p.

topImage2B9E79CA-5254-002B-DB8C8B3835D59DF3.jpg

sideImage2B9F41FD-5254-002B-DB8C8066EB1D6E4C.jpg

sideImage2B9FE05C-5254-002B-DB8C3DB8500A3D01.jpg

bottomImage2BA0DB63-5254-002B-DB8CB1534B78C4FE.jpg

bottomImage2BA2139B-5254-002B-DB8CB8F161026F08.jpg

bottomImage2BA2E90D-5254-002B-DB8C7FEC2C5E0A0B.jpg

Subscribe to our newsletter to receive all the latest insights direct to your inbox