Analysts at Canaccord Genuity raised their target price on power products manufacturer Volex from 380.0p to 400.0p on Wednesday after the group's full-year trading update came in "strong and ahead of expectations"
Canaccord Genuity said Volex had seen "good demand" across structural growth markets including electric vehicle, complex industrial, and medical, which has driven share gains as supply chains improved through the year and boosted manufacturing output.
The Canadian bank stated reassuringly, new client wins and increased volume allocations had also allowed the group to "largely mitigate against a well-flagged normalisation of demand in consumer electronics" following the Covid-19 pandemic.
However, Canaccord thinks the most important piece of new information was that strong cash generation, in part due to some unwinding of strategic inventory, had driven "a significant deleveraging" of the group's balance sheet in H2.
"As a result, we think M&A may feature sooner rather than later once again to support the group's strategic growth ambitions. We have raised our forecasts to reflect the upgraded guidance for FY23E which subsequently lifts our outer year expectations. Adjusted EPS rises by 5%/3%/1% for FY23E/24E/25E, respectively," said Canaccord, which reiterated its 'buy' rating on the stock.
Sounds very encouraging.
Fonzey.
Unless cash up front is paid beforehand, why would Novacyt put themselves in an even more precarious position by getting no money back from the original contract! then allowing the govt to potentially renege on the deal or seek to renegotiate any new deal further down the line.
For me, there has to be cash flowing from the government to novacyt first before anything else. How much cash? Everything ideally but, no doubt that is unlikely particular if we want this to be cleared up in the next 12 months.
Fonzey.
Jeez! What the hell is going on in that company / boardroom? If the strategy was to remove Pi's and lower the share price, well they look like nailing it!! Surely, putting out the best worded RNs you can even though there is some very poor figures in there isn't too much to expect! The positives seem to be added as merely an aside!
The negative always seem to be much more visible than any positive. Difficult to gain any insight into the thinking of this company strategy apart from a very disdainful view of shareholders.
If they wanted to be honest before the AGM by showing this update now, they should never have pitched pay rises for the AGM in the first place! It seems duplicitous, lacks any goodwill or regard to shareholders who have watched their investment diminish rapidly over the last 12 months.
It's not rocket science that engaging with your support base, backers or customers improves sentiment, trust, mutual respect and a willingness to help each other when required, Agm's for instance? Is this all part of the long term plan for a cheap takeover, going private or is there a poor working relationship at boardroom that just stymies any progress going forward? I have no idea but thoroughly cheesed off with the lot of them. Frankly, they are an embarrassment. :(
Seems to me Volume has dried up but, this time next week its the new tax year and I expect it to pick up from Pi's. Any new pi's checking rns's will see last few are Director buys and a competitor to boot ! can only speculate but that looks like a good risk to reward for me. Will be interesting to see if any more/currents funds that are holding think that too. :)
Fonzey
Sp in an uptrend looking for 200dma, Bio buying in, Directors buying, Tata pushing Q16 Q32 mygo, positive news update coming in April and British summertime & longer evenings too!! What a start to the weekend :) :)
Fonzey.
Great news :) positive lets not look for the negative in this! Maybe a few more Rns coming next week too. When the ceo of a company buys in I dont think it matters when the rns drops, last thing on a Friday or first thing. Fact is he has put his hat in the ring.
Fonzey.
Interesting that they drop the Rns once the market opened not after 7am. It definitely seems to helps the share price when it drops in trading hours! Are Nova releasing at strategic time to up the share price just that little more by creating some consternation (positive) or am i just imagining it. :)
Fonzey.
Hi Larry,
Looks and reads to me as this is one joint project between ncyt and dhsc. The images of the labs inside fit out is identical and the language used in the article suggests the brief was drawn up by ncyt and dhsc together. Good news I think. Thanks for sharing.
Fonzey.
Just got back from work and turned my phone on (flat battery all afternoon) what a turnaround! I knew something was cooking with the bigger than normal buys this morning but was thinking maybe Hambro again but i imagine its more Biosynex after that TR1 this afternoon. Things are looking up finally. Lets hope for more meat on the bones soon. Nice to feel chirpy again after checking the board its been a while.
Fonzey.
Min £4.71 after 3 years
Max £7.80 after 3 years
Baseline is a good return from current price and max is excellent. Whether it gets there in 1 year or 3 is key could be plenty of spikes along the way.
Personally, just glad we finally know something definite from an rns! There is a target to aim for and first stop is at least double from here.
Fonzey.