Imagination Technologies surges on N+1 Singer upgrade

11th Mar 2016 09:30

(ShareCast News) - Imagination Technologies surged on Friday after N+1 Singer upgraded the stock to 'buy' from 'hold' and lifted the price target to 191p from 151p following a visit to the company's headquarters in Kings Langley.In its last note, N+1 outlined a scenario where the group reduced research and development costs by a further £8.5m. It said on Friday that this scenario looked increasingly likely, hence the upgrade."Post the visit we remain convinced that the group's core platforms are well aligned with the emerging trends in the industry," the brokerage said.N+1 Singer reckons the current trading environment will continue to be tough, but given the strength of the group's unique intellectual property, it said any material weakness in the share price could bring potential bidders for the company out of the woodwork.It said Imagination was a highly attractive asset and expects any bid to be higher than its new target price."We believe the group's IP has significant strategic value and that the new executive team is committed to maximising shareholder value."At 1010 GMT, Imagination shares were up 10% to 180p.