LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity upped their rating on software outfit Eckoh to 'buy' on Tuesday after the group turned in a strong first-half performance despite Covid-19 impacts.
Canaccord firstly pointed out that in line with last month's update, Eckoh reported flat year-on-year first-half adjusted underlying earnings in a period that contained over two months of full lockdown due to the coronavirus pandemic.

Although Canaccord said the group's revenue performance was merely "creditable", down 4% on the prior year, the analysts said they were "even more encouraged" by Eckoh's order bank in its US secure payments business, standing at $26m, and the fact that UK orders were up 8% annually.

The Canadian bank also stated that Eckoh's US order bank/UK order intake figures provided "confidence for future revenue performance" in 2022-23.

"Although we do not provide estimates for out years at this stage, the current management guidance provided for FY21 calls for flat profit and as such we believe the guidance is prudent, and we are confident in our new estimates for FY21, which mirror guidance," said Canaccord, which issued the stock with a 75.0p target price.

"Liquidity is ample, with a net cash position now approaching £13.0m and a special dividend of 0.61p per share proposed in place of the full-year 2020 final dividend which was cancelled."

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