Tekcapital shares rose on Monday after broker SP Angel said they saw 74p fair value target for TEK shares on the successful implementation of its growth strategy.
The 74p future fair value target far exceeds SP Angel’s existing fair value target of 18p per share based on the current net asset values of portfolio companies.
SP Angel’s current 18p fair value target implies over 45% upside from Tekcapital’s 10.5p share price.
After applying forecasts of future revenue growth and potential profitability, SP Angel said they “arrive at a fair target for Tekcapital on successful execution on the growth opportunities presented of 74p, implying 600%+ upside potential.”
SP Angel applied potential scenarios for market penetration across the portfolio companies to deduce possible revenues and then calculated profit margins using industry-standard metrics.
Guident is the Tekcapital portfolio company SP Angel sees the most upside from the current valuation on the successful execution of its strategy with a potential future fair value of $115m vs a current valuation of $18m.
Guident is the only privately company in the Tekcapital portfolio after MicroSalt listed in February.
The research note is available in full via Research Tree.
