Friday 24 March 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


Veltyco cracking update - increase targets

By Tom Winnifrith & Steve Moore | Thursday 16 February 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Our 35p offer price share tip of Veltyco (VLTY) last month is looking good after another cracking trading update. There is more to come.…

The company updates that, further to a previous trading statement;

Trading in December continued to be strong. Based on the management accounts the board expects that the results for the year ended 31 December 2016 will be significantly ahead of market expectations with net revenues in excess of €5.7 million (2015: €2.6m) and the adjusted operating EBITDA for the full year 2016 in excess of €2.0 million (2015: € 0.7m). The board expects to publish the audited final results in April 2017.”

Broker to the company, Northland had forecasts of €1.4 million of adjusted EBITDA on revenue of €4.9 million for the year, with an adjusted pre-tax profit of more than €3 million on revenue of €8.8 million for the now current year.

Its forecasts are now under review – and we’d suggest the forward numbers now look conservative. The shares have responded to a current 41.5p – above our initial 40p limit buy price.

However, our initial target of 52.5p now looks light and we nudge the limit buy price up to 43p (which would currently represent a circa £29 million, c. €34 million market cap) and our target price to sell increases to 60p. Up to 43p, our stance remains buy.

This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tip from Tom & Steve and ahead of a new shorting idea from Lucian Miers this week click HERE


Filed under:


Never miss a story.




This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


More on VLTY


Comments

Comments are turned off for this article.

Search ShareProphets |


Get your UK Investor Show tickets now here.



Stock market news |



Complete Coverage

New World Oil & Gas

African Potash

Cloudtag

The chairman's blog by Sir Ben Dover

Avanti

Gulf Keystone

Worthington

Highlands Natural Resources

Bearcasts

CloudTag

David Lenigas

Quindell

Tern

Optibiotix

Concepta



Recent Comments |






Site by Everywhen