LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity raised their target price on gaming hardware manufacturer Quixant from 225.0p to 240.0p on Thursday after broad-based demand drove a full-year earnings beat for the firm.
Canaccord Genuity noted that Quixant had reported that both its gaming and Densitron businesses had performed strongly through 2021, with the group able to meet high levels of customer demand by utilising strategic inventory and pricing strategies to navigate significant supply chain challenges.

As a result, full-year revenues were expected to be $87.1m, representing a material beat of 9% to the analysts' $80.0m forecasts, while adjusted pre-tax profits were also projected to be ahead of consensus of $4.9m, which they see flowing down to an upgrade of 5% at the adjusted earnings per share level.

The Canadian bank, which reiterated its 'buy' rating on the stock, said the outlook for Quixant was also "encouraging", with the company reporting that it had entered 2022 with "a strong order book", which provides "good levels of visibility" across gaming and Densitron.

"While the procurement of electronic components and other supply chain headwinds are expected to at least persist into H2 2022, we are cautiously optimistic that both a broadened product offering and strategic initiatives to manage supply chain risk leave the group well placed to secure further growth moving forwards," said Canaccord.

"To reflect this, we upgrade FY22E revenue by 6% (which anticipates 10% growth y/y on the new $87.1m guidance) with adj. EPS edging up by 1%. Quixant expects to report FY21E results on 5 April 2022, when we anticipate further details on new business wins and an update on pipeline opportunities across its key Gaming and Broadcast markets."

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