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magazineSopheon remains an exciting pick in the tech space
Sopheon (SPE:AIM) 337.5p
Gain to date: 2.3%
Original entry point: Buy at 330p, 22 June 2017
Half year results continue the solid organic progress at enterprise innovation management software specialist Sopheon (SPE:AIM).
Another eight new licences were sold in the latter part of the six month period, taking the total to 28 versus 20 this time last year.
Importantly, future revenue expectations are increasingly being de-risked with visibility on $20.3m of income for the full year to 31 December 2017.
This is an improvement on the $17.5m when we first flagged this stock idea on 22 June at 330p, with $10.5m of that figure under recurring sales contracts.
While the share price may not have moved much since our original article, nothing has changed in terms of the investment case.
The shares currently trade on 14 times this year’s anticipated 24p per share of earnings, based on FinnCap forecasts. The broker has stuck to its 620p share price target, implying more than 80% upside on a 12 month view.
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