TLDR:
– Tekcapital shares have gained 105% year to date and are undervalued compared to its portfolio company’s net assets
– Two broker notes suggest that the stock has at least 50% upside
Although Tekcapital has gained 105% year to date, the shares are still undervalued compared to its portfolio company’s net assets. However, focusing on the current net asset value may be a little short-sighted. Two broker notes released shortly after the MicroSalt IPO suggest the stock has at least 50% upside. Tekcapital has a 20p fair value target according to SP Angel, while Kemeny Capital sees 29.9p as fair value. There are macroeconomic influences for investors to consider, such as the impact of a higher interest rate environment on the valuation of early-stage technology companies. Tekcapital is an investment company that provides access to knowledge-intensive companies typically only available to select private equity venture capital investors. The company’s strategy is inherently long-term, but public listing provides the opportunity for quick revaluation of shares on positive news.
