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Sopheon (LON:SPE)
Share price: 1020p (up 12.3% today, at 14:19)
No. shares: 10.1m
Market cap: £103.0m
Trading update
Sopheon plc, the international provider of software and services for complete Enterprise Innovation Management solutions, issues the following trading update.
This company is really on a roll! There's another positive update today - here are the key points;
... a number of further transactions have been signed resulting in a record third quarter performance, traditionally our quietest quarter due to the holiday period
... We are therefore delighted to report that revenue visibility has now broken through $30m
... Sales pipeline activity for the balance of the year remains robust. The Board now expects the results for the year to exceed current market expectations2.
By revenue visibility, I think they are referring to revenues for the full year to 31 Dec 2018. Plus, presumably whatever additional contracts can be won in Q4.
Forecasts - have been increased, to 48.3p adjusted EPS this year, and 55.2p next year. That gives a 2018 PER of 21.1, falling to 18.5 for 2019. That seems a reasonable valuation, given that the company has established a track record of beating forecasts. Therefore, I wouldn't be surprised to see this share break out to new highs in the months ahead.
My opinion - I failed to spot the opportunity here, which is a pity.
Well done to holders! We have a good update out today, and comments from the house broker that a further beat against (upwardly revised) forecasts could be on the cards. That seems to me a strong reason to hang on to this share, if I held (which I don't unfortunately).