Shore Capital Markets had a lot of positive things to say about technology group BATM Advanced Communications Ltd (LSE:BVC) in the house broker’s latest research note.
“BATM has a strong balance sheet with cash resources of more than US$40mln (£31mln), a highly experienced R&D team, a proven IP portfolio and global client reach,” explained Shore Cap.
Under Moti Nagar, who took over as chief executive in January, the overwhelming message emerging from BATM is “focus”, said Shore Cap analysts.
“BATM has identified its future core opportunities and is aligning its business to these,” they said “The core is focused on high-capacity switching capabilities and edge-computing in networks.
“Within cyber, the business is moving forward specialising in encryption. In bio-medical molecular diagnostics, leveraging equipment manufacturing capability and disruptive IP for assays.”
The group has identified its non-core business areas as those in medical distribution and operations in bio-waste solutions and does not intend to pursue any further strategic investment here.
“Asset allocation, with business strategy, is firmly focused on growth investment,” said Shire Cap. “We expect positive news flow to continue. With commercialisation, positive operating leverage to reported results should be expected in due course – leading to an increasingly attractive fundamental valuation.”
BATM’s share price was 25p with a market capitalisation of £109mln at the time of writing.