Numis Corporation PLC (LSE: NUM)

Numis Corporation PLC (LSE: NUM) is an FTSE AIM UK 50 Index Listed UK based independent institutional stockbrokers and corporate advisors. The Company offers multiple services such as research, execution, corporate broking and advisory to companies listed in the United Kingdom and its investors. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Investment Rationale – Sell at GBX 343.00

• Recommeded Cash Offer: NUM has received a cash offer for about GBP 410 million (GBX 350 per share) from Deutsche Bank as the German firm deepens links with the UK corporate client segment. Thus, the stock price surged more than 67% in a single day on 28 April 2023, providing a profit booking opportunity.
• Technical Standpoint: The momentum oscillator, 14-day RSI (~88.13) has approached nearly an overbought scenario. Thus, stock prices can face retracement in the short-term.
• Macroeconomic Uncertainties: The market sentiments can remain weak in the short-term due to 40-year high inflation, subdued consumer disposable income, geopolitical tensions, and political risks.
• Declining Fundamentals during FY22: The Company’s top-line revenue declined 33% YoY and its profit before tax went down 72% YoY during FY22.

Share Price Chart  

Conclusion

Based on the decline in revenue and profit before tax during FY22, macroeconomic challenges, and price action stance, a "SELL" recommendation on Numis Corporation PLC has been given at the current market price of GBX 343.00 (as of 28 April 2023 at 08:25 AM GMT+1).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 28 April 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 5: Dividend Yield may vary as per the stock price movement.

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