www.amphionplc.com
Amphion builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK.
Amphion has a significant shareholding in 8 Partner Companies developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.
Amphion Innovations is significantly undervalued against its NAV, says broker
Technology commercialisation firm Amphion Innovations (LON:AMP) is significantly undervalued against its net asset value, says Seymour Pierce analyst Dr Mike Mitchell.
The broker has begun coverage on the firm, which focuses on the medical and technology sectors, initiating with a 'buy' targeting a price of 10 pence (current price: 4 pence a share).
"In light of the near-term progress being made across the business, we believe Amphion is significantly undervalued against its NAV," said Mitchell.
However, the analyst conceded that in the light of wider market conditions, that discount was justified.
But he added: "However, with the DataTern business effectively acting as an ‘engine’ for the portfolio business of Amphion, we believe the current approximate 70 per cent discount is overdone.
"Instead, we believe a discount of around 30 per cent is more justified," he said, adding that the broker's own target price had been worked out at 10 pence.
Since floating in 2005, the firm's strategy has been to build high-potential companies with innovative, proprietary, and proven technology.
This approach has delivered a portfolio of partner firms which operate across industrial sectors, and it has a wholly-owned licensing firm called DataTern.
"While capital markets have been restrained in their desire to fund small, emerging tech businesses, Amphion has focused DataTern to deliver what is now a growing stream of IP licensing revenues," said Dr Mitchell.
The analyst added that DataTern's ownership of ObjectSpark patents represented widely-used relational databases, which DataTern had successfully licensed to multinational companies.
"Claims of noninfringement and patent invalidity from Microsoft, SAP AG and SAP America, Inc. have been refuted by Amphion, who continues to enforce these patents against other infringers.
"We anticipate that licensing streams will continue to be an important and growing source of revenue for Amphion in the near-term," concluded the analyst.
