TechMARK movers: Panmure switches Fidessa to buy

25th Nov 2009 15:20

Financial software supplier Fidessa was boosted by broker Panmure Gordon upgrading from hold to buy following recent share price weakness. The share price target is 1176p. The broker points to new contract wins in Latin America and the US plus Fidessa's strong market position as reasons to be positive about the company. The business is a strong cash generator. The shares are trading on just over 19 times forecast earnings for 2009. Finance director Andy Malpass has acquired 10,000 shares at 1095p each, taking his stake to 99,918 shares.A weak performance from its DataAuthentication division sent GB Group shares lower. House broker KBC Peel Hunt slashed its 2009-10 profit forecast from £2.1m to £800,000. The interim figures showed a profit of £341,000 in the six months to September 2009, down from £521,000 in the first half of the previous year. DataAuthentication has been hit by lower volumes from two major clients. These clients changed their business models due to the tough economic environment which meant that they carried out fewer full identity checks on new customers.The total number of clients for the DataAuthentication service has risen. Newer clients take time to build up revenues. There is £4.28m in the bank although that figure may fall slightly by the end of March 2010. There are also £7m of potential tax assets which mean that there will be no significant tax charge for the next few years. FTSE TechMARK - RisersE2V Technologies (E2V) 60.00p +5.73%Alphameric (ALM) 32.25p +4.88%Fidessa (FDSA) 1,119.00p +4.19%AEA Technology (AAT) 25.50p +3.03%RM Group (RM.) 163.00p +2.52%Antisoma (ASM) 32.00p +2.40%SDL International (SDL) 384.25p +2.33%Kewill (KWL) 107.75p +1.89%Torotrak (TRK) 27.00p +1.85%Dialight (DIA) 213.00p +1.67%FTSE TechMARK - FallersGB Group (GBG) 19.00p -20.83%QinetiQ Group (QQ.) 161.90p -9.30%Psion (PON) 91.00p -6.67%Skyepharma (SKP) 95.00p -5.00%Intec Telecom (ITL) 99.00p -4.81%Consort Medical (CSRT) 380.00p -4.76%Oxford Instruments (OXIG) 221.00p -4.54%ProStrakan (PSK) 98.00p -3.69%Corin Group (CRG) 69.00p -2.82%Innovation Group (TIG) 11.75p -2.08%