Market's view on Touchstar Plc
Published on April 2024
- A stock watcher highlighted TST’s valuation dilemma, questioning whether to value it based on its current state with minimal liquidity and minimal investor-facing activity, or on a speculative basis assuming potential improvements in these areas.
- Another pointed out a purchase of 30,000 shares in three tranches, indicating increasing buying prices.
- Concerns were raised about the company being too small to remain listed, suggesting possibilities for mergers or acquisitions to bolster its size or make it a more attractive target for a takeover.
- There is a perspective that merging small UK technology companies could reduce overhead costs and potentially allow for growth through cross-selling and overseas expansion.
- WH Ireland’s positive outlook for TST was noted, with a reiterated price target of 140p based on the company’s shift towards recurring revenue models and performance improvements.
- The inconsistent share price movement was discussed, particularly how it does not reflect the improved financial performance.
- A stock watcher commented on TST’s illiquidity and the potential inevitability of a buyout, discussing the company’s standing as too small to remain independently listed.
- The financial progress of TST was acknowledged, highlighting improvements in recurrent income and the possibilities for further enhancements through strategic mergers and acquisitions.
- The discussion also included the company’s increasing overseas sales, growing recurring income, and the usage of AI, with potential for future growth through various strategic endeavors.