JULIAN YATES INVESTEC
We see Micro Focus as a core cash-backed value opportunity in the sector, with today’s cash return supporting this view. With more cash returns likely down the line, and forecast expectations sensibly set, we remain buyers and retain our 600p target price.
MICHAEL BRIEST UBS
Micro Focus returned a 50 pence per share return earlier than we expected, although accelerated cash returns were always on the cards given its leverage target of 1.5 times earnings. We expect a further 120 pence per share to be returned as capital or through dividends by April 2014. ‘Buy’
DAVID TOMS NUMIS
Even on flat revenue, management can deliver growth. The market continues to undervalue the prodigious cash generation and sensible capital allocation. With the 30 per cent of the current share price to be returned in cash over the next two years, the shares remain undervalued. ‘Add’ from ‘Buy’