KBC Peel Hunt has still got a bee in its bonnet about Autonomy, predicting the share price will fall after second quarter results due to the lack of underlying growth, a high likelihood of a miss in Q3 and the need for a deal.
The broker reckons sales and earnings per share are likely to be in line with consensus at $220m and 29c, implying zero underlying sales growth and less than KBC's own forecasts.
It also worries that large banking deals - those above $15m - which it believes flattered 2008 and 2009 results, are drying up.
"Autonomy announced four of these deals in 2008 and another four, somewhat smaller, deals in 2009. So far in 2010, we have seen just one," KBC points out.
It started coverage earlier this month and maintains its 'sell' rating with £15 target price.
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Broker snap: Autonomy still out of favour at KBC
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