finnCap Research Company Notes - 21 November 2019
Nov 21, 2019 / News
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Sector: Energy
Europa Oil & Gas (EOG) : Corp
CEO stepping down
Key data
- Share price (p) 1.9
- Target price (p) 32.0
- Market cap (£m) 8.2
- Enterprise value (£m) 5.3
Hugh Mackay is stepping down as CEO, to be replaced on an interim basis by the Non-Exec Chairman, Simon Oddie, until a replacement is found. Europa continues to market its Irish farm-out opportunities and is awaiting a decision on the Wressle development appeal, which – if successful – will provide a material increase in production in 2020 and help fund Europa’s work programme.
Jonathan Wright
020 7220 0543
Sector: Technology & Telecoms
Netcall (NET) : Corp
AGM statement
Key data
- Share price (p) 22.2
- Target price (p) 90.0
- Market cap (£m) 31.8
- Enterprise value (£m) 30.7
Netcall has stated that it is trading in line with management expectations and ahead of the same period last year in a reassuring AGM statement. Encouragingly, the company has seen increased traction in both the customer engagement and Low-code solutions, and we expect this to support our forecasts. This is further strengthened by the growing pipeline, driven by a number of cloud-based opportunities. We note the Board guides that current political and economic uncertainties may affect customer decision making, and accordingly continue to monitor the timing of its larger contracts. Netcall’s net cash breakeven (£0.0m) is also in line with expectations for FY20E (net cash of £0.3m) and target FY FCF of £1.0m after expanded investment for growth, and we make no changes to forecasts. We continue to believe that Netcall’s visibility is improving. Target price of 90p reiterated and we look forward to interims in the new year.
Andrew Darley
020 7220 0547
Sector: Technology & Telecoms
PCI Pal (PCIP) : Corp
AGM update flags a new omnichannel product
Key data
- Share price (p) 29.5
- Target price (p) 50.0
- Market cap (£m) 12.6
- Enterprise value (£m) 11.1
PCI Pal has released an encouraging trading statement ahead of its AGM today. Following on from its excellent FY 2019 results (revenue up 40%), the Board is pleased with the YTD performance and remains confident on the prospects for the rest of the year to June 2020 as it executes against its strategic objectives. PCI Pal continues to maintain close relationships with its reseller partners, driving a number of high-profile contracts during the year, including a contract with a FTSE 250 retailer and a Fortune 100 pharmaceutical via partners Capita Pay360 and Paymetric (a Worldpay subsidiary), respectively. PCI Pal was awarded ‘Partner of the Year’ in the key EMEA region by Genesys AppFoundry. On the back of this reassuring update, we maintain our forecasts and TP.
Lorne Daniel
020 7220 0545