We update on Quixant, Restore, Dixons Carphone and Ibstock
Gain to date: 2.3% Original entry point: Buy at 437.5p, 25 Jan2018
ANALYSTS AT BERENBERG have recalculated expectations through to 2020 for gaming technology supplier Quixant (QXT:AIM), resulting in earnings per share (EPS) forecast hikes of up to 20%.
EPS estimates for this year to 31 December 2018 have increased from $0.2224 to $0.2434, with equivalent forecasts for 2019 and 2020 now pitched at $0.2823 and $0.30.61 respectively.
Yet the investment bank’s number crunchers still believe that even these raised estimates remain ‘conservative.’ This implies that there is still scope for the company to outperform over the mediumterm, and increases the stock’s chances of hitting 600p analyst targets.
The Cambridge-based business design logic box technology that controls pay-to-play digital gaming machines – one arm bandits, quizzes, bingo and casino games. Quixant’s outsourced solution is becoming increasingly popular among gaming terminal manufacturers, and law changes in places like the US, Japan and potentially Brazil, are also freeing new markets from restrictive legislation.
Berenberg is also encouraged by emerging revenue streams, from high-specification displays and button decks that player use to operate game machines. The investment bank’s analysts estimate that Quixant had just an 11% market share in 2017, the first time revenue broke through $100m .
Now showing a modest paper profit after the equity market sell-off earlier this year, we remain positive on this investment story. (SF) BROKER SAYS: 2 0 0