How has imagination’s investment case changed after today?

JAMES GOODMAN INVESTEC

We are initially encouraged by today, with a very strong royalty unit performance. However, we calculate a 15 per cent decline in average rates which suggests full year royalty revenue unlikely to move up materially. ‘Hold’.

NICK JAMES NUMIS SECURITIES

The investment and losses at Pure are likely to drive downgrades to earnings estimates. However on balance the investment case is more centred around the longer term earnings opportunity from demand. ‘Buy’.

PIA TAPLEY N+1 SINGER

Royalty rates should hold up for the second half of the year and chip shipments are expected to reach 500m by the end of the year. These are all positive signs, and we continue to like the long-term prospects. ‘Buy’.