Stockbroker Panmure Gordon has today published its list of top small and mid cap picks for 2014. It features several companies that Shares has discussed in detail over the past months and years including discount alcohol seller Conviviality Retail (CVR:AIM) and online gambling operator GVC (GVC:AIM), both of which are running Shares Plays of the Week.
Panmure highlights 13 small and mid cap stocks. It sees the biggest upside in Johnston Press (JPR) with a 25p price target being 79% above the price as of 17 December. It comments: 'The JPR equity story remains very attractive in our view, a function of the following: de-leveraging; top line recovery; relative profit stability; digital; refinancing. All of these factors remain intact and most are showing tangible improvement in the most recent IMS (interim management statement) update.'
Fusionex International (FXI:AIM) catches the broker's eye with a 521p price target for the software group, representing 46% potential upside. 'The year 2014 looks set to be a banner year for Fusionex. The company’s new Big Data analytics solution, GIANT, should begin to make sales,' says Panmure.
The broker makes a contrarian call on Speedy Hire (SDY) which was recently the subject of an accounting problem which prompted the surprise resignation of chief executive officer Steve Corcoran and hurt its share price. Panmure believes that despite the recent problem Speedy has a 'consistently improving UK story, with cost reductions from depot consolidation and increasing levels of efficiency as a result.' It has a 69p price target.
Other stocks under Panmure's microscope include Dechra Pharmaceuticals (DPH) which is another running Shares Play of the Week; Liontrust Asset Management (LIO:AIM) which we wrote about in October; and Kromek (KMK:AIM) which joined the stockmarket in October as a spin-off from Amphion Innovations (AMP:AIM).