ASK Raymond James is expecting Prime Focus to deliver significant upsides in the next 12-18 months.
The brokerage house said in its report: "We expect consolidated margins to increase by 590 bps to 28.1% for FY08E as operating expense of the UK subsidiary company
would decline due to cost cutting on property rentals and wages and efficient use of the equipment. The stock trades at 24.5x FY07E earnings and 14x FY08E earnings on a consolidated basis. We are very positive on the stock from a long-term perspective and expect it to deliver significant upside over the next 12-18 months."
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