blinkx can build on market position, says Numis
Video search engine firm blinkx (LON:BLNX) is well placed to develop its market position, according to Numis Securities.
The broker is bullish on the prospects of the company, whose market capitalisation has now passed £700mln after a spike in the share price yesterday.
It follows a solid set of first half numbers from the company, whose revenues jumped 36% in the six months to the end of September to US$117mln with a 76% increase in underlying earnings to US$18.2mln.
“We believe that Blinkx is executing well in an industry which is enjoying structural tailwinds,” Numis’s Paul Richards said.
“We have raised our FY14 revenue forecast from US$216mln to US$240mln, which represents growth of 21% on a reported basis and adjusting for last year’s Olympics and Presidential Election, the underlying increase is 33%.”
He considers this and the 20% growth estimate for 2015 to be conservative.
Richards has raised its target price to £2.21, leaving around 23p of headroom for the shares at their current levels.