Avacta (AVCT) : Corp

Potential COVID-19 therapeutic

Key data

  • Share price (p) 106.5
  • Target price (p) U/R
  • Market cap (£m) 221.5
  • Enterprise value (£m) 211.0

The announcement that some of the Affimer reagents, recently generated for development of a COVID-19 antigen test, are also neutralising Affimers raises the potential for a therapy to prevent or treat SARS-CoV-2 infection as they block the way the virus infects human cells. Avacta indicated that it is seeking a partner to develop the project, and given the interest in this field (eg. GSK, AstraZeneca, Regeneron, Eli Lilly, amongst others) this is quite possible. Too early perhaps to value, but once again illustrating the broad utility of its Affimer platform.

Mark Brewer 020 7220 0556

D4T4 Solutions (D4T4) : Corp

Celebrus v9.2 offers embedded machine learning

Key data

• Share price (p) 173.5
• Target price (p)  310.0
• Market cap (£m)  69.8
• Enterprise value (£m) 57.1

This is a key development for what was already a leading-edge data gathering solution; Celebrus v9.2 boasts embedded machine learning (ML) and natural language processing (NLP) capabilities. The enterprise solution captures, and instantly makes available, data across all digital channels to enable customer analytics and hyper-personalisation through one-to-one marketing in real time. ML analysis can deliver huge benefits in real time but requires large amounts of high quality data, and this is exactly what Celebrus provides. By harnessing the power of ML and NLP with this data, users will see far better customer engagement and sentiment, leading to reduced churn and higher profitability.

Lorne Daniel 020 7220 0545

Sopheon (SPE) : Corp

COVID-19 trading update

• Share price (p) 700.0
• Target price (p)  1 200.0
• Market cap (£m)  71.2
• Enterprise value (£m) 53.4

Sopheon has confirmed a smooth and rapid transition to working from home. FY20 visibility of $23.2m compares favourably with $23.0m achieved by the time of the June AGM in FY19, and ARR remained strong at $15.9m (FY19: $15.9m). As at April month end the group had $21.8m net cash, with board confidence expressed through the confirmation of the planned 3.25p dividend. Certain core customer verticals such as food, beverages & consumables, chemicals, and defence, are showing resilience; however, as noted by listed peers, sales cycles across all verticals are extending. In response, the group has taken measures to limit the planned growth in expenditure, including hiring plans. Stress testing of the model indicates no concerns; however, given the uncertainty over the outturn for new sales in the next months of FY20, we suspend forecasts pending establishment of the new normal.

Andrew Darley 020 7220 0547

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