HYDG.L Share News (HYDG)

Analysts at finnCap have today issued a very positive research note on support services group Hydrogen, following the company´s half year trading update. Thus, they highlight the record performance put in by the firm´s contract business, which accounts for 88% of revenue and 46% of net fee income. As well, its permanent business has recovered after a slow start to the year. Furthermore, Hydrogen´s strategic overseas expansion seems to be continuing successfully. finnCap has therefore decided to raises it PBT forecasts to £3.50m, from £3.25m, and EPS from 9.9p to 10.7p. As well, it believes that, "forecast risk remains on the upside."Lastly, and worth pointing out as well, the broker calls attention to the fact that in the last twelve months, "the stock has moved from one of the most expensive in its peer group to one of the cheapest. The stock now sits at a PE of 8.3x and a yield of 4.6% representing a PE discount of c.40% and a yield premium of 35%." For all of the above reasons finnCap has decided to retain a buy rating on shares of Hydrogen with a price target of 150p. As of 14:08PM shares of Hydrogen are flying 17.5% higher, to the 104p mark, in London trading. AB