Berenberg confident Quixant can hit its targets

Quixant's interims last week might imply the computer games hardware specialist was performing badly, but Berenberg reiterated a 'buy' recommendation as the half-year results "are not half the story".

First-half revenues fell 12% to $50.3m and PBT by 30% to $6.1m.

The decline, said Berenberg, was due to the previous year's number being inflated by a significant one-off order of machines, but returning to the company’s typical 40:60 revenue split in 2018, "we are confident Quixant will hit FY 2018E numbers" and calculate the company also has a $5m "revenue cushion".

While analysts remodelled unit sales, average selling prices and product mix, they did not make changes to earnings, forecasting adjusted earnings per share of 22.24p.

A price target of 600p, offers around 25% upside.