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The Expert View: Xaar, HSBC and Anite

by Chris Marshall on Dec 10, 2013 at 05:01

‘Buy’ Anite after sharp sell-off

Demand remains and Anite (AIE.L) has not lost market share, noted Canaccord Genuity analyst Bob Liao as he bumped up his recommendation on the shares to ‘buy’ after interim figures from the company.

Anite, a software company that specialises in providing testing systems for mobile phones, reported a 64% decline in pre-tax profits in the six months to the end of October, to £5.1 million. Revenues were down 6% to £57.5 million.

But overall, Liao noted, the company’s interim numbers were in line with its previous guidance. He noted that a ‘disappointing’ performance from the company’s dominant handset testing business was ‘largely due to external factors’. In addition Anite’s competitors have suffered from the same tough trading conditions.

Anite’s share price has tumbled 38% so far this year and most analysts now rate the company a ‘strong buy’.

‘Looking ahead, the fundamental demand drivers for the Handset Testing business remains in place,’ said Liao, in a research note entitled ‘signs of stabilisation’.

After ‘We maintain our price target at 106p but switch our recommendation to BUY (from Hold) in light of the share price performance.’

Shares in Anite rose nearly 6% yesterday, to close at 91p.

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