We up­date on Quix­ant, Re­store, Dixons Car­phone and Ib­stock

Gain to date: 2.3% Orig­i­nal en­try point: Buy at 437.5p, 25 Jan2018

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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

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