In a note on Thursday, the broker said the networking and biomedical specialist had made “sustained investment” in its technology in recent years and that the fruits of this were “now being seen in the group’s success” across both its Networking & Cyber and Bio-medical businesses.
“We note that the recent success in supporting [coronavirus] solutions has highlighted BATM’s capabilities in the Bio-Medical division; that demand for instruments (readers) is noted to be higher is welcome news”, ShoreCap said. Analysts added that they believed the prospects for the networking business also “remain bright”.
The assessment followed a trading update in which the firm hiked its full-year revenue and earnings expectations, which ShoreCap expected to result in “a meaningful improvement” to its 2020 earnings (EBITDA) forecasts.
“Whilst the first half performance to end June is still dependent upon revenue and cost phasing, we can be confident about the full year”, the broker said.
Shares in BATM rose 4.6% to 99.8p in late-afternoon trading.