NCC Group (NCC)

Sector:

IT Services

Index:

FTSE 250

186.60p
   
  • Change Today:
    -0.60p
  • 52 Week High: 335.00
  • 52 Week Low: 167.40
  • Currency: UK Pounds
  • Shares Issued: 310.03m
  • Volume: 231,399
  • Market Cap: £578.51m
  • RiskGrade: 166

Canaccord Genuity upgrades NCC Group to 'buy'

By Iain Gilbert

Date: Monday 22 Nov 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity upgraded software outfit NCC Group from 'hold' to 'buy' on Thursday, citing valuation grounds as their primary reasoning.
Canaccord said NCC's five-month trading update was "important" in two respects. Firstly, the analysts noted that the update revealed that NCC's underlying trading was ahead of the prior year on a like-for-like revenue basis and secondly, that its recent acquisition of IPM was "trading as expected" and that "integration is progressing to plan".

The Canadian bank also highlighted that, although no specific comment was made WRT year-to-date operating profits were assumed to be "in line with managements' expectations" for the 2022 trading year, with the analysts going as far as to believe that this means underlying earnings were ahead year-on-year.

However, Canaccord also pointed out the change in accounting policy, implemented at the time of the company's 2021 full-year results, and consequently, move its forecasts to below company collated consensus for 2022.

"Our new adj EBIT is £50.m Vs consensus at circa £52.0m. We assume around £6.0m cloud configuration costs, which would have previously been capitalised (offset by £2.0m related amortisation now not present). Additionally, we are unsure which estimates in consensus are pre- and post-IPM integration costs of £2.5m (we exclude these). Net-net, we downgrade both full-year 2022-23 adjusted earnings before interest and tax/earnings per share by circa 8%/5%," said Canaccord, which lowered its target price on the stock from 340.0p to 310.0p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

NCC Group Market Data

Currency UK Pounds
Share Price 186.60p
Change Today -0.60p
% Change -0.32 %
52 Week High 335.00
52 Week Low 167.40
Volume 231,399
Shares Issued 310.03m
Market Cap £578.51m
RiskGrade 166

NCC Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
89.41% below the market average89.41% below the market average89.41% below the market average89.41% below the market average89.41% below the market average
49.47% above the sector average49.47% above the sector average49.47% above the sector average49.47% above the sector average49.47% above the sector average
Price Trend
31.97% below the market average31.97% below the market average31.97% below the market average31.97% below the market average31.97% below the market average
10.09% below the sector average10.09% below the sector average10.09% below the sector average10.09% below the sector average10.09% below the sector average
Income
51.15% below the market average51.15% below the market average51.15% below the market average51.15% below the market average51.15% below the market average
35.29% above the sector average35.29% above the sector average35.29% above the sector average35.29% above the sector average35.29% above the sector average
Growth
11.3% below the market average11.3% below the market average11.3% below the market average11.3% below the market average11.3% below the market average
32.67% below the sector average32.67% below the sector average32.67% below the sector average32.67% below the sector average32.67% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

NCC Group Dividends

  Latest Previous
  Interim Final
Ex-Div 17-Feb-22 14-Oct-21
Paid 04-Mar-22 12-Nov-21
Amount 1.50p 3.15p

Trades for 01-Jul-2022

Time Volume / Share Price
16:42 7 @ 186.60p
16:35 139,683 @ 186.60p
16:29 12 @ 187.40p
16:29 152 @ 187.40p
16:27 281 @ 187.40p

NCC Group Key Personnel

CEO Adam Palser

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