Broker snap: "Strong strategic value" for Synchronica

15th Oct 2010 12:32

Synchronica is expected to benefit from its recent all-share acquisition of Canadian mobile technology group iseemedia for £5.2m, research firm Equity Development reckons.Equity Development says the UK mobile software developer "has strong strategic value, given the favourable mobile macro trends" as it has tapped in to a rapidly-emerging market in India, through its acquisition.Analyst Philip Carse says 2011 fiscal year forecasts "support a share price of up to 28p, or 50% above current levels, whilst the 2012 fiscal year forecasts support up to 59p / share."Carse sees a strong strategic value given "the strength of the company's sales pipeline, the repeat orders that will start to come through from the various contracts signed in the last 24 months, the growing importance in sales to device manufacturers as well as mobile network operators, and now the iseemedia acquisition."Carse claims that Synchronica's value to a strategic buyer would be considerably higher than today's share price, or indeed Equity Development's estimated fair value.