Imagination Technologies has moved 2% higher on news of a new contract with Sony.
The chip designer's shares are up 6.5p at 332p after it announced the Japanese group had signed a further licence to use its products for system-on-chip consumer products. But analyst Eoin Lambe at Liberum Capital repeated his sell advice to clients ahead of an expected trading update on Thursday, saying:
Sony is an existing Imagination licensee so this is not major news. Interestingly Sony only licensed Imagination's older intellectual property (Series 5 not 6), which comes with a lower licence fee. [This is the] first license announcement since the year end - we don't expect the licensing strength seen [last year] to continue in current environment.
But Mike Jeremy at Daniel Stewart was more positive:
Medium-term demand from new generations of 3D and mobile-related consumer products should underpin opportunities.
