finnCap Research Company Notes - 18 February 2020

Feb 18, 2020 / News

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Sector: Industrial Technology

Trackwise Designs (TWD) : Corp

Initiation of coverage – IHT offers huge opportunity

Key data                              

  • Share price (p)                  85.5
  • Target price (p)                180.0
  • Market cap (£m)                              12.6
  • Enterprise value (£m)                    12.3

The group’s potentially game-changing Improved Harness Technology™ (IHT) flexible printed circuit technology offers a substantial growth opportunity as a replacement for the traditional wire harnesses currently used in a range of large-scale markets. The group’s year-end trading update highlighted some specific short-term challenges and weaker market conditions in its RF business, while we feel 2020 should see a strong uptick in activity particularly for IHT. As the investment proposition is based on the success of the IHT, the low share price is a golden opportunity, in our view. Our near-term 180p price target offers significant upside, with much greater rewards possible as contract awards occur.

David Buxton

020 7220 0542

dbuxton@finncap.com

 

Sector: Industrial Technology

Trifast (TRI) : Corp

Trading update: tougher conditions, Atlas gains delayed

Key data                              

  • Share price (p)                  167.5
  • Target price (p)                175.0
  • Market cap (£m)                              203.9
  • Enterprise value (£m)                    219.6

The company has announced its trading update covering its Q3 and Q4 to date. Since its last announcement in November, it has seen market conditions become more challenging and is now guiding FY20 forecasts to the lower end of market expectations. As such, we reduce our FY20 adjusted PBT estimate from £20.3m to £18.2m, with a 10.3% reduction in EPS to 11.3p, with a volatile FY21 outlook.

David Buxton

020 7220 0542

dbuxton@finncap.com

 

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