Brokers' views: Panmure Gordon

Among the blue chips reviewed by broker Panmure Gordon, FTSE 100 enterprise search specialist Autonomy has been given a detailed examination after a ‘meaning-based marketing’ briefing. Analyst George O'Connor retains his 'buy' stance, noting that ‘it has always been difficult to argue that Autonomy is particularly undervalued; however, with [web content management acquisition] Interwoven bedded in, the multiples look very attractive and are below previous troughs.’

Elsewhere, drug maker GlaxoSmithKline was boosted by a US regulatory vote in support of its Cervarix cervical cancer vaccine. The broker expects a full US approval ‘in late 2009 or early 2010’ and reiterates its buy recommendation and 1400p price target.

Morse code

Among the fledglings, the broker takes a contrarian stance on IT services and technology play Morse, where management has ‘much to do’ and industry analysts are 'very pessimistic' about the market. Panmure reckons that 2010’s outlook is predicated ‘more on the improving operational leverage rather than the increasing revenue’ and expects a return to the dividend list. The verdict is buy, with a 45p price target.

On AIM, German high-temperature superconductor innovator Zenergy Power took a revenue hit from a customer delay, ‘highlighting the lumpy nature of the business’. However this setback ‘belies the continued success and level of activity within the business’, and the broker is confident that the company will achieve the two further orders it needs in the second half to meet its €3m forecast. ‘This should be achieved, as the global economy continues to recover and customer discussions move to an advanced level.’ Buy, with a 220p price target.