Perform, which repackages digital sports broadcasts for bookmakers, is leading the mid-cap risers, up an impressive 8% at 293p, although volumes are low.
Credit Suisse analysts put out a note on Wednesday that singled it out as a possible bid target:
1) We believe the group is a unique European internet play, positioned to benefit from structural tailwinds in media: increasing digital sports media consumption, broadband penetration, online video advertising, in-play betting and new digital platforms and devices.
2) In our view, Perform has a scalable business model and technological platform that should facilitate growth.
3) Perform has attractive financials, with strong revenue and profit growth with high revenue visibility and cash flow conversion.
4) We believe several of Perform's businesses offer significant 'blue sky' upside potential not reflected in our forecasts or valuation.
5) Ultimately, we believe that Perform's rights portfolio, digital positioning and resultant top-line growth will likely attract potential acquisition interest.
The analysts raised their price target on the stock from 280p to 320p. But any rise in the shares may be short lived. Takeover hopes drove the stock up to around 283.5p on Wednesday, but they sunk back later to close at 272p.
Rather more substantial bid rumours are flying around Bowleven, the West Africa-focused small-cap oil explorer, after it shot up 15% to 98p. Westhouse Securities analyst Andrew Matharu said:
It's in play now. It's been in play for a while.
Traders say blue-chip peer Tullow Oil is the interested party and that it could offer 180p a share.
The shares are still a way off the high of 134.25p in late February, when Dragon Oil expressed an interest in the business, only to walk away 10 days later.
Jefferies analysts said:
While nothing came of the short flirtation Dragon Oil had with Bowleven, we believe it highlights the industry sees underpriced opportunity in Bowleven's shares.
They says the shares are trading at a 53% discount to its "discovered risked sum of parts".
