Cenkos Securities this week rated real estate investor Conygar Investment Company (LON:CIC) a BUY on grounds that the shares look “outstandingly cheap” given the group’s significant cash war chest, strong management and track record for making strong returns on investments. Conygar’s strategy is to buy undervalued investment-based companies, assets or portfolios and then apply appropriate leverage, asset-manage and recycle capital into new opportunities with the objective of generating high returns on equity. The note stated that adjusting for cash, the group’s shares are currently trading at a 35% discount to net asset value (NAV) as reported in the September Results. Cenkos also stated that this discount was anomalous when compared to Conygar's peer group several of whom trade at a premium to NAV. With £45m of unused cash and a £58m debt facility giving total firepower of £103m, Conygar is patiently watching the market for deals. “The shares are cheap with a re-rating awaiting the next potentially transformational corporate or portfolio deal,” Cenkos said. Its price target is 150p.
Evolution Securities reiterated BUY rating and price target of 27p at mobile banking services specialist Monitise (LON:MONI) on news that the company has formalised its relationship with VISA Europe. Under the terms of the deal, Monitise will develop and supply mobile payments services for Visa Europe’s member banks and financial institutions across Europe. The company already has an existing development contract with Visa Inc, worth $16.5m over five years. Although no financial details were given on the latest contract, Evo said it imagined it to be of a similar order of magnitude to the Visa Inc deal.
HB Markets maintained a SPECULATIVE BUY at water technology group Modern Water (LON:MWG) on the back of an announcement that the company was acquiring Cogent Environment, a global provider of environmental and process monitoring products, technologies and services. The move gives Modern Water access to Cogent’s online and portable products that are used for monitoring heavy metals in over 20 countries and boosts its exposure to a developing market segment.
Pace Micro Technology (LON:PIC) , the company that makes set-top boxes for the global payTV market, said today that it was “working to agree contract terms with a satellite operator for the launch…
