finnCap Research Company Notes - 21 August 2019
Aug 21, 2019 / News
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Sector: Technology & Telecoms
Wameja (WJA) : Corp
HomeSend – home straight
Key data
- Share price (p) 5.4
- Target price (p) 20.0
- Market cap (£m) 65.4
- Enterprise value (£m) 53.7
Wameja (formerly eServGlobal) is a direct 35.68% investment in the well-funded HomeSend (HS) JV with Mastercard, a partnership with a payment industry global leader in the $127 trillion cross-border payments market. The sale of the legacy business removes distraction and appeases risk, enabling focus on the value and opportunity in HS as payment platforms such as TransferWise and Monzo – cross-border in particular – see valuations soar. The 2Q update highlights strong growth and, with Mastercard backing, success is surely inevitable. Although patience may be required, Wameja is built for it and the longer the inevitable corporate action takes, the higher peer group multiples grow. With a fair value of 30-50p, we reiterate our 20p 12-month target price as the market gains awareness of value of the platform, in anticipation of a corporate event.
Lorne Daniel
020 7220 0545
Sector: Industrials
Hardide (HDD) : Corp
Update on investment programme
Key data
- Share price (p) 71.0
- Target price (p) 88.0
- Market cap (£m) 34.4
- Enterprise value (£m) 29.1
The company has announced an update on its investment programme, highlighting that it has now ordered three new coating reactor units that will add to its existing UK and US facilities. This scale up in capacity and capability is a strong indication of the Director’s confidence in future commercial orders, the statement also points to a number of exciting test programmes underway. The shares reacted well to the recently announced Airbus A330 award, which provides further confidence in achieving significant commercial opportunities in the aerospace sector and highlights the need to expand its facilities in advance of anticipated demand. Despite the recent share appreciation, we still see significant upside to the shares and maintain our 88p price target.
David Buxton
020 7220 0542
Sector: Industrials
Robinson (RBN) : Corp
Solid set of interim results
Key data
- Share price (p) 78.0
- Target price (p) 130.0
- Market cap (£m) 13.0
- Enterprise value (£m) 17.1
Robinson has reported interim results for the six months ending 30 June 2018. These interim results are notable for strong volume growth and solid underlying cash generation. Our FY forecasts continue to look achievable so we are not changing our forecasts or 130p/share price target at this stage.
Raymond Greaves
020 7220 0553
Sector: Support Services
Cello Health (CLL) : Corp
Supporting clients through FDA approval
Key data
- Share price (p) 128.5
- Target price (p) 160.0
- Market cap (£m) 135.7
- Enterprise value (£m) 129.3
Cello has acquired Innovative Science Solutions LLP (ISS) for an initial $6.4m in cash (maximum $10.5m). ISS is a scientific consulting firm specialising in strategic counsel and regulatory support for the healthcare industry in the US. It adds a new and key component to Cello’s offering of technical services along critical drug development pathways. The addition of ISS is in line with the group’s strategy of growing its technical services offering in the US healthcare market and we have upgraded our FY 2019E EPS by 2% and FY 2020E by 7%, after allowing for investment in headcount to support growth. We continue to expect the group to have net cash at December 2019E, meaning further enhancing additions could be financed from existing resources if opportunities can be found. We have raised our target price to 160p from 145p, valuing Cello at a 30% discount to peers on a P/E basis.
Guy Hewett
020 7220 0549
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