Broker finncap has raised its price target on social housing software specialist Castleton (LON:CTP) by 21% after interim results.
Castleton flagged half year underlying profits of £1.7mln (loss £0.1mln) in a trading update in October though after one-offs and impairments there was an interim loss of £1.43mln.
Revenues for the period rose to £8.5mln (£1.9mln) as new acquisitions Brixx and Impact contributed for four months.
David Payne, chairman, said: “The businesses we have acquired over the past 15 months are bedding in well and early signs from our customers are encouraging.
“With a strong core of recurring revenue, I am confident we can maintain organic revenue growth whilst we accelerate the number of our customers taking more of our services. “
Finncap noted the results reflected substantial corporate activity, including acquisitions, a loan note conversion, share consolidation and a placing.
Now focused on the not-for-profit sector and with further acquisitions likely to boost the 16% organic growth, the broker raised its price target to 90p from 74p.
Shares eased 6p to 76.5p.