CML Microsystems, the semiconductor maker, has jumped more than 20% this morning after a trading update flagging up improving sales rates.
The shares are up 7p, or 20.9%, at 40.5p after CML also highlighed signs of better order book visibility from certain customers and that it has decided to remain a publicly listed company after weighing its options in recent months.
In its outlook, CML says:
"The company has experienced better trading conditions recently and the board expects full year results to March 31 to show an overall improvement against those reported for the first-half."
Mark Davis at Panmure Gordon has responded to this morning's update by moving to a "buy" recommendation from "under review" and by setting a a price target of 50p.
He comments:
"CML's markets have suffered from weak trading conditions for some time, so this interium management statement brings welcome news. There is still some way to go to see the company move into long-term profitability but the stabilisation prompts us to turn positive."
