Panmure Liberum has reiterated its 'buy' rating and 95p target price on Oxford Metrics (AIM:OMG), the smart sensing and measurement technology group, whose shares fell as much as 8% on Tuesday.
The target sits at roughly double the closing price of 46.8p, which Panmure described as conservative against management's newly outlined ambitions.
The shares weakened as the group used an investor event to set out a three-year plan to double revenue, lift recurring and repeatable income to around 25% of sales, and push adjusted operating margins into the mid-teens.
Panmure said achieving those goals would drive significant shareholder value. Its note accompanied interim results showing revenue up 3% to £20.7 million, in line with April's trading update.
Motion Capture, the larger division, grew 10% to £16.3 million on entertainment and engineering demand and international contract wins, while Vision Metrology fell to £4.4 million from £5.3 million as projects slipped into the second half.
Gross margin edged up to 66.0%, and the adjusted operating loss narrowed to £0.2 million from £0.4 million.
The group held £31.7 million in cash and fixed-term deposits after dividends and buybacks.
Panmure Liberum trimmed its forecasts for the old September year-end to reflect contract timing in the merged industrial vision business, but left management's expectations for the extended period to December unchanged.
The broker introduced a 15-month forecast to December 2026 to reflect the new year-end.
Mid-morning, the shares were down 4.4% at 44.68p.
