Wolfson Micro’s shares surge on Sharp deal and market thumbs up

Good time to buy, suggest analysts

Shares in tiny Edinburgh firm Wolfson Microelectronics soared by nearly 11 per cent in London trading today (17th July 2013) following news of a deal with Sharp and upbeat analysts’ recommendations.
In a reverse of its fortunes last month when Wolfson’s shares dropped 12 per cent in a single day after it was suggested sales of Samsung’s Galaxy S4 phone – for which it makes audio parts – were slowing, this time the AIM-listed manufacturer was bathing in positive news.
First, it emerged Wolfson had been awarded a contract to supply Sharp with its WM5102 audio chip, designed to reduce background noise and make calls clearer.
This was then followed by a flurry of ‘buy’ recommendations, led by Liberum Capital which suggested the manufacturer’s share price could hit 230 pence or more in coming months – a sentiment endorsed by other analysts such as JP Morgan Cazenove.
The 230 pence target is also close to the price paid for shares in May by non-executive director Ross Graham who splurged nearly £50,000 on buying shares at 223 pence, following in the footsteps of fellow non-exec Glenn Collinson who a few weeks earlier had spent more than double that sum on acquiring Wolfson shares at 201 pence.
Meanwhile Wolfson has strengthened its management team with the appointment of another non executive director, Charlotta Ginman, who previously was chief finance officer at UK luxury phone maker Vertu and, before that, director of finance at Nokia.
Shortly before close today on the LSE, Wolfson’s shares had risen to the 158 pence mark, still close to their 52-week low of 140 pence, but a far cry from the year high of 233 pence.

About Dave Evans

Dave Evans is a long established commentator on both the IT and cellular industries. His current focus is on share price trends within the sector. You can email him here
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