finnCap Research Company Notes - 21 January 2019
Jan 21, 2019 / News
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Sector: Life Sciences
Avacta (AVCT) : Corp
AGM business update – preclinical progress on 2 fronts
Key data
- Share price (p) 37.4
- Target price (p) 120.0
- Market cap (£m) 43.2
- Enterprise value (£m) 38.0
The company has confirmed that H1 FY 2019 is trading in line with market forecasts, and updates relating to its lead bispecific PD-L1/LAG3 Affimer, TMAC Affimer drug conjugate platform and its collaboration with Moderna are encouraging, providing further evidence of the incremental value being created in its Affimer-driven technology platforms. Management is confident that there will be multiple reagent licensing deals in 2019, given the pipeline of late-stage interest from potential parties. Equally, we would hope/expect further therapeutic licences during 2019, given the preclinical progress that is being made, and building on the LG Chem development deal in December, which has a bio-dollar value of up to $300m plus royalties. We reiterate a target price of 120p.
Mark Brewer | mbrewer@finncap.com
Sector: Financial & Insurance
K3 Capital (K3C) : Corp
Confident positive outlook
Key data
- Share price (p) 275.0
- Target price (p) 375.0
- Market cap (£m) 116.1
- Enterprise value (£m) 108.6
A solid performance in H1 as market leader delivers results in line with expectations, confident of future growth and underpinned by record WIP levels across the group.
Nik Lysiuk | nlysiuk@finncap.com
Sector: Financial & Insurance
Lighthouse Group (LGT) : Corp
Streamlining increases simplicity and focus on growth
Key data
- Share price (p) 27.0
- Target price (p) 40.0
- Market cap (£m) 34.5
- Enterprise value (£m) 24.9
The transfer deal clears a way for management to focus even more strongly on the huge potential offered by Lighthouse’s affinity network, which exposes the company’s advisers to 6m individuals. Increased penetration of this exclusive addressable market should be bolstered further by strong underlying industry drivers that force more individuals to seek financial advice.
Nik Lysiuk | nlysiuk@finncap.com
Sector: Industrials
Robinson (RBN) : Corp
FY 2018 trading at least in line with expectations
Key data
- Share price (p) 65.0
- Target price (p) 130.0
- Market cap (£m) 10.8
- Enterprise value (£m) 16.2
RBN has issued a trading statement covering FY 2018. The statement anticipates FY 2018E revenues of £32.8m, +10% y-o-y and slightly ahead of our £32.2m estimate. Profits are also expected to be “comfortably inline”, leading us to believe that trading conditions have at least stabilised and we expect good H2 2018 order intake to drive similar levels of momentum into FY 2019E. We are not changing our forecasts or target price at this stage.
Raymond Greaves | rgreaves@finncap.com