RE: SP Target?19 Jan 2021 14:38
Excellent advice by IvorHunch, Jurado RetiredBanker and chilting.
The only thing I would add is try and judge what you believe is fair value for the company (ie. the MCAP) based upon revenue and potential. I always revert to fundamentals when valuing a share. Now this doesn't always work successfully - I sold out too early in the likes of ASOS and Ceres when I could have got 2-3 times more, but that is because they were driven by sentiment, and I couldn't justify the market cap. Sentiment is something that is impossible to judge/predict - covid shares went crazy last year on sentiment, most were devoid from reality. Top slicing to crystalise some profits is a good strategy (as others have said) but if you believe in the company, it's worth having some 'free carry'.
My own personal short term target is 8-12p, depending upon the trading update. We're on the cusp of that now, although i'm thinking of raising the target to 10-14p. This would give an MCAP of £40-60m which is entirely reasonable IMO. One thing you should be aware is that the positive trading update may well be priced in now, so the SP could drop when that's released. However, given the momentum and increasing scope of products that ITX is used in, I'd expect this to only be temporary.