Cambridge Index

Cambridge Index advances 1.1%

The Cambridge Index rose 1.1% or 211.9 points to 18,850.3, led by gains in index heavyweights such as ARM Holdings, DS Smith and Greene King. BNP Paribas maintained its “Outperform” rating on ARM Holdings, up 2.8%. Barclays reiterated its “Overweight” recommendation on the stock with a target price of 1250.0p, while Liberum Capital maintained its “Sell” rating on the stock with a target price of 700.0p. Johnson Matthey, down 0.6%, announced that it has completed the acquisition of the battery materials business of Clariant AG for $75m. Separately, the company announced the completion of the sale of its Gold and Silver Refining business to Asahi Holdings, Inc. In its results for the fourth quarter ended 26 December 2014, CSR, down 0.2%, announced that its underlying revenue declined 10% YoY to $188.1m while its profit after tax stood at $21.6m, compared to a loss of $76.1m in the prior year.
In its results for the full year ended 31 December 2014, Dialight, up 10.8%, announced that its revenue climbed to £159.8m from £131.2m reported last year. Meanwhile, its operating profit rose to £15.8m from £11.6m posted in 2013. The company’s profit after tax increased to £9.5m from £7.7m. Sagentia Group, up 2.6%, announced that its full year revenue declined to £28.3m from £30.6m reported in 2013, while its operating profit dropped to £4.7m from £5.4m. The company’s profit eased to £3.4m from £4.6m reported previous year. The company proposed a significant rise in its full year dividend to 4.0p. Westhouse Securities reissued its “Add” rating on the stock with a target price of 175.0p. Vernalis, up 2.4%, announced the achievement of the second milestone in its drug discovery collaboration with Asahi Kasei Pharma. It will receive a payment of £0.5 million in appreciation of this achievement. Frontier Developments, up 1.5%, announced that it will launch its Elite: Dangerous game to Xbox One, the all-in-one games and entertainment system from Microsoft, in late 2015. Kier Group, up 0.1%, stated that it has promoted three Executive Directors to its board, following the departure of its Chief Operating Officer.
1Spatial which ended flat last week announced that it has issued 37.0m options to both its executive team and other members of staff. N+1 Singer downgraded its recommendation on Abcam, down 0.1%, to “Sell”. N+1 Singer reaffirmed its “Buy” rating on Amino Technologies, down 0.4%, with a target price of 148.0p. N+1 Singer reissued its “Buy” rating on Horizon Discovery Group, down 2.3%. JPMorgan Chase & Co. restated its “Underweight” rating on Aveva Group, down 6.5%, with a target price of 1220.0p. Also, Numis Securities cut its rating on the stock to “Add” with a target price of 1770.0p, while Barclays Capital lowered its target price on the company’s shares to 1690.0p from 1900.0p and maintained its “Equal weight” rating.
UK markets ended mostly higher in the earlier week, after the ECB unveiled details of its QE programme, stating that it would begin asset purchases this week. The FTSE 100 index slipped 0.5% to 6,911.8, while the FTSE AIM 100 Index gained 0.5% to finish at 3,181.1. Also, the FTSE techMARK 100 Index edged 0.5% higher to 3,817.6.
US markets closed lower in the previous week, amid growing fears that the US Fed might hike interest rates by the middle of this year following robust US jobs data. The DJIA index fell 1.5% to 17,856.8, while the NASDAQ Index dropped 0.7% to 4,927.4.

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

ARM Holdings PLC

Shares of chip maker, ARM Holdings PLC, gained 2.8% to 1191.0p. The stock was subjected to diverse reviews by various brokers. BNP Paribas maintained its “Outperform” rating on the stock. Barclays reiterated its “Overweight” recommendation on the stock with a target price of 1250.0p. Liberum Capital maintained its “Sell” rating on the stock with a target price of 700.0p. Numis Securities maintained its “Buy” recommendation on the stock with a target price of 1350.0p. BMO Capital Markets restated its “Market Perform” rating on the stock with a target price of 995.0p.

Aveva Group PLC

Engineering technology company, Aveva Group PLC, slumped 6.5% to 1491.0p and emerged as the top loser in the Cambridge Index. JPMorgan Chase & Co. restated its “Underweight” rating on the stock with a target price of 1220.0p. Numis Securities cut its rating on the stock to “Add” with a target price of 1770.0p. Barclays Capital lowered its target price on the company’s shares to 1690.0p from 1900.0p and maintained its “Equal weight” rating.

Blinkx PLC

Blinkx PLC, the leading video search engine, jumped 5.6% to 32.8p.

Brady PLC

Brady PLC, a provider of transaction and risk management solutions for metals and commodities, climbed 6.9% to 92.5p.

Cambridge Cognition Holdings PLC

Cambridge Cognition Holdings PLC, which specialises in computerised neuropsychological tests, advanced 4.9% to 75.5p. The company announced the opening of a US office in Salt Lake City to meet the increasing demand from both existing and new North American clients.

Dialight PLC

Dialight PLC, a provider of electronic lighting and electromagnetic products, surged 10.8% to 732.5p and emerged as the top gainer in the Cambridge Index. In its results for the full year ended 31 December 2014, the company announced that its revenue climbed to £159.8 million from £131.2 million reported last year. Meanwhile, its operating profit rose to £15.8 million from £11.6 million posted in 2013. The company’s profit after tax increased to £9.5 million from £7.7 million. The company proposed a final dividend of 9.8p per share, compared to 9.5p per share posted in 2013. The company indicated that it continued to see robust demand for its LED lighting and added that the Board remained positive about its future prospects. Investec reiterated its “Buy” recommendation on the stock. N+1 Singer restated its “Under Review” rating on the stock.

Domino Printing Sciences PLC

Domino Printing Sciences PLC, a provider of ink jet and laser technologies, lost 4.5% to 734.5p.

Sareum Holdings PLC

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

Sphere Medical Holding PLC

Sphere Medical Holding PLC, a leading developer of innovative monitoring and diagnostic devices for the critical care setting, dropped 5.0% to 19.0p.

Xaar PLC

Xaar PLC, a provider of inkjet printing technology, edged 4.9% lower to 365.0p.

Other movers

1Spatial PLC

1Spatial PLC, the spatial big data company, which manages the world’s largest spatial data, ended flat at 5.5p. The company announce that it has issued 37.0 million options to both its executive team and other members of staff. Options over 11.0 million new ordinary shares of 1.0p each in the company were granted to a number of employees under the company’s EMI share option plan. Moreover, incentive options over 26.0 million ordinary shares were issued to members of the company’s senior executive team and certain Board Directors.

Abcam PLC

Abcam PLC, a producer and distributor of research-grade antibodies, slipped 0.1% to 472.0p. N+1 Singer downgraded its recommendation on the stock to “Sell”.

Amino Technologies PLC

Amino Technologies PLC, a leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, edged 0.4% lower to 139.0p. N+1 Singer reaffirmed its “Buy” rating on the stock with a target price of 148.0p.

CSR PLC

CSR PLC, engaged in designing single-chip wireless devices, eased 0.2% to 865.0p. The company, in its results for the fourth quarter ended 26 December 2014, announced that its underlying revenue declined 10% YoY to $188.1 million while its operating profit stood at $6.4 million, compared to a loss of $95.2 million posted in the earlier period. The company’s profit after tax stood at $21.6 million, compared to a loss of $76.1 million in the prior year. N+1 Singer reissued its “Hold” rating on the stock with a target price of 900.0p. Natixis maintained its “Neutral” rating on the company’s shares with a target price of 600.0p.

Frontier Developments PLC

Frontier Developments PLC, a leading independent developer of video games, added 1.5% to 230.0p. The company announced that it will launch its Elite: Dangerous game to Xbox One, the all-in-one games and entertainment system from Microsoft, in late 2015. FinnCap reiterated its “Corporate” recommendation on the stock.

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, lost 2.3% to 212.5p. N+1 Singer reissued its “Buy” rating on the stock.

Johnson Matthey PLC

Johnson Matthey PLC, a specialty chemicals company and leading provider of precious metal products and environmental technologies, eased 0.6% to 3387.0p. The company announced that it has completed the acquisition of the battery materials business of Clariant AG for $75.0 million. Separately, the company announced the completion of the sale of its Gold and Silver Refining business to Asahi Holdings, Inc.

Kier Group PLC

Building, civil engineering and property development group, Kier Group PLC, rose 0.1% to 1744.0p. The company stated that it has promoted three Executive Directors to its board, following the departure of its Chief Operating Officer. It has appointed Nigel Book and Nigel Turner to its board as the Executive Director for construction and infrastructure services and the Executive Director for Developments and Property services, respectively. It has also appointed Claudio Veritiero to the board in his current role as strategy and corporate development director. Furthermore, the Chief Operating Officer, Steve Bowcott, will leave the board with effect from 30 April 2015. Liberum Capital maintained its “Buy” rating on the stock with a target price of 1710.0p.

Sagentia Group PLC

Sagentia Group PLC, an international technology consulting and IP licensing firm, advanced 2.6% to 140.0p. The company announced that its full year revenue declined to £28.3 million from £30.6 million reported in 2013, while its operating profit dropped to £4.7 million from £5.4 million recorded in the earlier year. The company’s profit for the year eased to £3.4 million from £4.6 million reported previous year. The company proposed a significant rise in its full year dividend to 4.0p. The company has proposed a share buy-back and liquidity programme. Westhouse Securities reissued its “Add” rating on the stock with a target price of 175.0p.

Vernalis PLC

Shares of biotech firm, Vernalis PLC, jumped 2.4% to 48.8p. The company announced the achievement of the second milestone in its drug discovery collaboration with Asahi Kasei Pharma. It will receive a payment of £0.5 million in appreciation of this achievement.

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