No funds hold the company in their top ten holdings, according to Financial Express data.
However, the company’s largest shareholder is Aberforth Smaller Companies Trust with a 15 per cent stake in the company. According to Euroclear, stock lending at Anite has risen but remains at a low level.
Stock lending is seen by some investors as a proxy for short selling. In March, the percentage of Anite shares that were out on loan increased from 0.52 per cent of its market cap to 0.86 per cent.
According to Financial Express data, the funds holding TUI Travel in their top ten holdings are Aberdeen UK Mid Cap, which has 2.8 per cent of its assets invested which makes the travel company, its eighth largest holding. Baring Equity Income has 3.3 per cent of its assets invested in TUI Travel and the company is its tenth largest holding.
Its shares have rallied 44 per cent since a low in December and are now at around 253p.
Thomas Cook shares are now trading around 265p, up 108 per cent, compared to a low of 127p in November 2008. The company is in the top ten holdings of four funds, according to Financial Express data, including Investec UK Alpha which is three per cent invested, making Thomas Cook its ninth largest holding. The other three funds are variations on Standard Life Inv UK Equity Unconstrained which has 2.9 per cent of its assets invested making it the fund's ninth largest holding.
Affected funds 1-yr performance
Source: Financial Express Analytics
Jonathan Imlah, an analyst at Altium Securities said there were two pieces of news that could impact upon Anite. One of Anite’s key competitors, Anritsu, published its full-year results to 31 March 2009 in which its revenue was down by 17 per cent. The company also went from an operating profit to an operating loss. Imlah also said that the swine flu epidemic in Mexico could hit travel companies with a potential knock on effect on Anite’s holiday booking software business.
Otherwise, Imlah stands by his 20 February note which retains a "Hold" recommendation. In the note he said: "Anite’s telecom testing hardware partner Agilent issued a profit warning after seeing sales slump. Agilent’s revenues fell 16 per cent in the first quarter to 31 January and orders were down 20 per cent as the company felt the brunt of the severe, worldwide economic downturn."
But he added that Agilent saw faint glimmers of optimism with regard to 4G, the area that it partners with Anite. Altium moved its trading recommendation to "Neutral" from "Sell" saying: "Downside to the share price should be limited by the company's circa £10m buyback programme."
Anite's share price has rallied from a 24.5p trough on 7 April and has remained between 27.5p and 29.5p. Its shares closed down 0.88 per cent on Tuesday, a fall of 0.25p to 28p. Over the last 12 months its shares have shed 27.5 per cent.
Anite was once a FTSE 250 company which is why it has so much analyst coverage. However, most have not issued notes since the company’s interim management statement on 20 February. On 23 February, Piper Jaffray downgraded the company to "Neutral" from "Buy" and decreased its target price to 41p from 50p.
The note said: "We remain concerned by forecast risk in the fourth quarter of 2009 and note that with a heavy second-half of 2010 weighting of profitability it will be at least a year before we have certainty on Anite's ability to hit our reduced full year 2010 estimates. We also highlight that current market conditions may hamper the potential sale of the travel division which means that the conglomerate discount is unlikely to be reduced."
On 20 February, Numis upgraded Anite to "Add" from "Hold" with a 32p target price. Its note said: "Our full-year 2009 forecasts are, we think, broadly in line with consensus, but for full-year 2010 we remain at the bottom end of consensus. The group has a very strong balance sheet, and a low multiple, but it is difficult to see much share price momentum given the group's chequered track record and the likely ongoing downward move in estimates."
KBC Peel Hunt awarded Anite a "Hold" recommendation with a 25p target price saying: "Management now expects revenues from 4G products to flow from the second half of 2010. This therefore represents a material delay. We recently reduced our recommendation to "Hold". The right time to buy into the stock will be in 12 months."
Investec retained a "Hold" recommendation with a 30p target price saying: "While the shares may appear inexpensive relative to its peers in the sector, we believe the near term forecast concerns will weigh on sentiment." Cazenove has an "In-line" recommendation and says: "Valuation remains unchallenging, but we see few positive catalysts in the near term to move the stock, in our view."
Canaccord Adams, retains a "Buy" recommendation with a 51p target price saying: "At this point, we maintain our "Buy" recommendation due to Anite’s continued strong FCF yield of 13 per cent. We expect negative short-term momentum in the shares."