finnCap Research Company Notes - 3 December 2019
Dec 03, 2019 / News
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Sector: Industrials
Gooch & Housego (GHH) : Corp
Full-year results, trading on track for FY 2020 forecasts
Key data
- Share price (p) 1 252.5
- Target price (p) 1 250.0
- Market cap (£m) 308.9
- Enterprise value (£m) 323.2
Full-year results were in line with expectations, with market conditions showing little change from previous indications. The subsea telecom fibre couplers continue to show robust growth and a strong order book. Demand from the microelectronics sector has stabilised, but remains affected by the slow-down in China and US/Chinese trade issues. A&D remains solid and the Lifesciences business has jumped in scale from the acquisition of ITL. No change to forecasts. The shares have performed well over the past quarter and are now fairly close to our maintained 1250p price target. As such, the shares look up with events, pending definitive news on Chinese trade talks, which could act as a catalyst to performance.
David Buxton
020 7220 0542
Sector: Industrials
Solid State (SOLI) : Corp
Interim results – trading on track
Key data
- Share price (p) 472.0
- Target price (p) 610.0
- Market cap (£m) 40.1
- Enterprise value (£m) 39.8
Interim results show a decent level of organic growth and points to trading being on track to achieve full-year expectations. Trading remains at a record level with improved gross margins and operational drop through. Sector diversity has increased. Cash generation has been creditable, allowing for the early pay-down of Pacer-related loans. No change to forecasts. The shares have performed well on the back of several upgrades over the past year, a combination of acquisitions and contract wins, but still trade at a discount to its peer averages and continue to offer good upside with trading momentum remaining positive.
David Buxton
020 7220 0542