Cambridge Index gains 2.2%

5/02/2019

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The Cambridge Index advanced 499.2 points or 2.2% to close at 23675.8, as four of the top five Index heavyweights posted weekly gains to their share prices.

JP Morgan Chase slashed its target price on DS Smith, up 6.1%, to 400p from 600p on the stock and gave an “Overweight” rating.

Goldman Sachs Group trimmed its target price on AVEVA Group, down 0.9%, to 2950 from 3050p and gave a “Neutral” rating.

Abcam, up 8.6%, announced that it has expanded its custom rabbit monoclonal production capabilities through the acquisition of Calico Biolabs. Peel Hunt restated its “Buy” rating on the stock.

Cambridge Cognition Holdings, up 15.8%, announced that it has teamed up with a major pharmaceutical company to expand the utilisation of its cloud-based CANTAB Connect platform by providing online neurological testing to patients in India.

Scientific Digital Imaging, up 5.7%, announced the acquisition of Thermal Exchange Limited for a consideration of approximately £900k. Netcall, up 3.2%, announced that it expects to report revenues and adjusted EBITDA for six months to 31 December 2018 of approximately £11.4m and £2m, respectively.

Peel Hunt reissued its “Buy” rating on Quixant, down 1.8%.

Brady, down 4.7%, announced that it anticipates revenues and adjusted EBITDA for FY2018 to be around £23m and £2.6m, respectively. Also, the company reiterated the joining of Carmen Carey as its Chief Executive Officer with effect from 18 February 2019.

RhythmOne, down 8.4%, announced that it has been approached by Taptica International Limited for an all-share merger.

Horizon Discovery Group, down 9.1%, announced that it expects FY2018 revenue to surge 61% to £58.7m on a reported basis, with revenues on a constant currency basis rising 66% to £60.5m. Horizon expects a positive EBITDA for the period and is likely to surpass market estimates. Separately, the company announced that it has appointed Jayesh Pankhania to replace Richard Vellacott as the Chief Financial Officer. Peel Hunt reaffirmed its “Hold” rating on the stock.

IQGeo Group, down 10.9%, announced in its trading update for the year ended 31 December 2018 that it expects to report a 20% jump in its higher-margin own product revenue of around £20m. However, overall revenues are likely to fall 8.4% to £25m, as some of its orders were delayed into 2019. Meanwhile, the firm announced a change in its registered office to CB1 Business Centre, Twenty Station Road, Cambridge, with immediate effect.

UK markets closed higher in the last week, supported by gains in commodity and utilities sector stocks. UK house price growth dropped to a six-year low in January, whereas the net consumer credit climbed less than expected in December. The British manufacturing PMI fell to a three-month low in January. The FTSE 100 index advanced 3.1% to settle at 7020.2, while the FTSE AIM 100 index rose 1.3% to close at 4770.0. Meanwhile, the FTSE techMARK 100 index gained 1.5% to end at 4601.3.

US markets ended higher in the previous week, amid upbeat earnings results from top companies. The US Fed maintained its benchmark interest rate steady and stated that it would maintain a patient approach on further interest rate hikes. In economic news, the US consumer confidence index fell to its lowest level in 18 months in January, while pending home sales dropped to a five-year low in December. The nation’s unemployment rate jumped to its highest level in seven months in January. US non-farm payrolls rose more than expected in January, while the manufacturing sector activity rebounded in the same month. The DJIA index rose 1.3% to end at 25063.9, while the NASDAQ index gained 1.4% to close at 7263.9.

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