Positive analyst comment19 Sep 2016 12:53
New article not posted here before:
Http ://www.proactiveinvestors.co.uk/companies/news/123757/accesso-has-a-spring-in-its-step-123757.html
Extract:
"WHAT THE BROKERS SAID
After the half-year results, Peel Hunt predicted analysts’ full-year forecasts would nudge up.
The broker noted that the second half of last year chipped in with two-thirds of annual revenues, so if that pattern is repeated accesso is on course for full-year revenue of around US$115mln, well ahead of Peel Hunt’s forecast of US$101mln.
The stock has been one of the best performers on the market over the last 18 months, pushing the rating to a heady 38 times projected earnings per share for 2017.
“However, we believe that the current rating is only factoring in some of the likely upside to our and market estimates and that the shares remain very attractive, with the company being one of the best positioned technology companies in the UK, in our view,” the broker said.
The broker has a target price of 2,100p.
The group’s house broker, Numis Securities, was caught on the hop by the strong performance, which was much better than it expected, though it did caution against reading too much into that, because of the seasonal nature of the sector accesso operates in.
“Notwithstanding this, we think H1's strength gives a good cushion against the July/August weakness that management indicate some customers suffered due to extreme hot weather in the US,” the broker said.
It is leaving its full-year forecasts unchanged, expressing confidence that the group is strong enough to withstand a weaker summer.
“R&D [research & development] acceleration is a key theme in the numbers; we speculate that such investment implies an increasing pipeline of material new opportunities. The R&D acceleration impacts our near term forecasts on a Numis basis, although has limited longer-term effect. However, our analysis indicates that very broadly, a material additional contract could be worth c.£3-4 on the share price and we think it reasonable to reflect this into our valuation on a 2019 view thus our TP [target price] increases to 1700p from 1270p,” the broker said."
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