finnCap Research Company Notes - 25 October 2018

Oct 25, 2018 / Research Notes

 

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Sector: Life Sciences

ANGLE (AGL): Update on ANG-002 FDA study

Key data                              

  • Share price (p): 43.0
  • Target price (p): 110.0
  • Market cap (£m): 61.3
  • Enterprise value (£m): 53.6

ANGLE has announced an update on its FDA clinical study as it seeks to become the first company to receive FDA clearance for a platform that captures and harvests intact circulating tumour cells from patient blood for subsequent analysis. Enrolment for the ANG-002 FDA study is making good progress with over 75% of the total required subjects having been recruited. The trial is targeting 200 metastatic breast cancer patients and 200 healthy volunteers of similar demographic.

Mark Brewer | mbrewer@finncap.com

Sector: Industrials

Alumasc (ALU): AGM update – trading in line

Key data                              

  • Share price (p): 128.5
  • Target price (p): 165.0
  • Market cap (£m): 45.8
  • Enterprise value (£m): 65.8

The AGM trading update highlights that the group has seen solid trading during Q1, outperforming a difficult underlying construction materials market. Sales are up by 3%. A strong order pipeline and potential to convert export orders for later on this year should accentuate 2H growth rates, with comparables looking much better. No change to forecasts, which in its self should provide some confidence to investors, following previous tougher updates. We maintain our 165p price target, giving strong upside to the current valuation. The shares are currently lowly rated and offer an attractive premium 5.8% yield.

Capital Drilling (CAPD): New contract wins

Key data                              

  • Share price (p): 38.5
  • Target price (p): 85.0
  • Market cap (£m): 52.1
  • Enterprise value (£m): 48.3

The Company has announced two contract awards with Centamin and Sama Resources, which are both highly significant for different reasons. The contract extension with Centamin underwrites continuity of a substantial proportion of group revenues over a 5-year period, while the new contract with Sama is the first in the Cote d’Ivoire and highlights the potential of West Africa, since the Company strategically repositioned one-third of its rigs in this growth region. While we retain existing forecasts, these contracts greatly improve revenue visibility and therefore should increase investor confidence. Further contract awards would have a significant drop through to profits and offer potential forecast upside. The shares offer good upside to our 85p price target. These contract awards should be taken well.

David Buxton | dbuxton@finncap.com

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