Shares in Equiniti (EQN) fell 6 per cent following the release of a damning note from analysts at Panmure Gordon, outlining 15 “red flags” to back up its sell recommendation on the administration software provider.
IC TIP:
Hold
at
229p
The problems listed are comprehensive, ranging from returns below the weighted average cost of capital (WACC), recurring exceptional charges and high gearing levels. Equiniti has responded to these criticisms, noting for example a difference in calculation approach over WACC and gearing, while adding that levels of exceptional charges are on track.
