finnCap Research Company Notes - 1 August 2018

Aug 01, 2018 / Research Notes

Read our regular corporate finance notes featuring updates from the finnCap Research team's sector experts.

Download the full research note here

Sector: Life Sciences

Cambridge Cognition (COG): Commercial collaboration with US

Key data                              

  • Share price (p): 151.0
  • Target price (p): 175.0
  • Market cap (£m): 34.2
  • Enterprise value (£m): 32.3

The announcement of a commercial collaboration with digital health provider, Healthy Amplified, is another example of the recognition of Cambridge Cognition’s gold standard cognitive assessment technology as well as the company’s desire to build new distribution channels into the US market. Healthy Amplified provides a cloud-based HIPAA solution that aggregates medical history from multiple caregivers. It intends to rollout a newly launched population platform, including Cambridge Cognition’s CANTAB technology, across 35 US Metropolitan Markets by the end of 2018. We reiterate our target price of 175p, at which level the stock would trade on a 2019 EV/Sales of 3.5x.

Mark Brewer | mbrewer@finncap.com

Sector: Industrials

Transense Technologies (TRT): Year-end trading update

Key data                              

  • Share price (p): 35.5
  • Target price (p): U/R
  • Market cap (£m): 3.4
  • Enterprise value (£m): 1.8

The group has announced a satisfactory year-end trading update, with a strong increase in rental income from iTrack tyre pressure monitoring systems for large mining trucks. H2 trading is in line with that of H1 and revenues for the full-year were slightly ahead of last year. Net cash stood at £1.6m. Our forecasts remain under review, but we take encouragement that while overall revenue visibility is difficult to predict, the group has made strong progress in growing its recurring lease income.

David Buxton | dbuxton@finncap.com