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blinkx up as losses narrow, Citi says 'buy'

Shares in blinkx, the AIM-listed video search company, surge 12.7 percent after reporting narrowing first-half losses, prompting Citi to repeat its ‘buy’ recommendation and 80 pence target price.

Citi says revenues and gross margin were strong, while cash burn was also encouraging, adding that cash of $32.4 million with free-cash-flow break-even estimated in 2010 leaves the group with plenty of headroom.

As a result of a more focused strategy, the broker marginally reduces its estimated EBITDA loss for 2009 and EBITDA profit for 2010, but says its content and distribution deals continue apace.