SOPHEON (SPE:AIM) 450p

Gain to date: 36.4%

Original entry point: Buy at 330p, 22 June 2017

A very strong end to 2017 means Sopheon (SPE:AIM) will beat forecasts for 31 December 2017 on both revenue and profit. That’s behind
an impressive near 30% jump in the share price on 4 January, putting our Great Idea firmly in the money.

What’s more, the company is confidently talking up its software-as-a-service model, bolstering recurring revenues that provide increasingly visible performance into 2018.

Sopheon is the innovation management solutions supplier we first flagged back in June. It helps enterprises manage all aspects of new product development lifecycles, allowing customers to make smarter decisions about which products to develop and how to bring them to market faster.

Details of the scale of the beat were not given but the firm’s broker, FinnCap, felt it prudent to suspend 2017 and 2018 estimates until more information is available. That suggests to us that the outperformance is substantial. Sopheon will report full year results on 22 March 2018.

Interestingly, FinnCap now says that its previous 620p target price is a ‘minimum’ expectation, implying close on 40% further upside remains on the table.

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