Monday 20th January 2014
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Shares in Wynyard Group soared to a record, shooting up 19 percent, and could go even further according to an analyst who follows the stock.
The stock rose as high as $3.01, and recently traded at $2.98, valuing the intelligence software developer at $305.7 million.
The booming tech company's favourability has been likened to younger Palantir Technologies, the US-based intelligence gathering software developer, and is part of the security specialist tech stock in favour across all markets, Forsyth Barr analyst Blair Galpin told BusinessDesk.
"Wynyard is part of the whole sector that's quite hot," and the shares could continue to rise up towards $4, Galpin said. "That's the sort of level people are talking about. There's still room to move in terms of how far it can go, who knows what these stocks might do."
The Auckland-based security software developer today announced a deal with UK-based consultancy Arquebus Solutions to develop and supply specialist gun tracking software.
"There was a lot of interest last week. People keeping an eye on them and any positive news is just reinforcing that," Galpin said.
Wynyard's stock has risen 157 percent since it listed on the market mid-last year. It has yet to return a profit, and will announce its 2013 results late February.
"These tech stocks have got to keep delivering to forecast, and hopefully over-delivering. Their share price gets punished if they fail to deliver - as in the case of Diligent," Galpin said. "They live and breathe on their last announcement."
Last week, Wynyard said it met its 2013 sales forecast $21.5 million, equating to about 62 percent revenue growth. Wynyard's offer document projected 2014 revenue of $27 million.
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