While the short term outlook is better than expected, the medium to long term negatives will continue to outweigh the positives. The price reflects scepticism at Pace’s ability to execute its turnaround plan and fundamental questions about the long term relevance of the set-top box – and both assumptions are sensible.
NICK JAMES | NUMIS
The new management team provided a much-needed breath of fresh air, however fundamentally the story is unchanged. Pace is still in denial of the prospect that Apple could be disruptive to the video/set-top box market and we continue to believe this risk is material. We maintain cautious estimates.
IAN ROBERTSON | SEYMOUR PIERCE
It is good to see no kitchen sinking, but the impressive performance by new chief Mike Pulli is what is driving our change in recommendation from ‘hold’ to ‘buy’. We have greatly increased confidence that the company can deliver on the strategy set out in November.