Imagination Tech royalties to rocket, says Goldman Sachs

Shares in Imagination Technologies Group, the company behind the technology used in Apple's new iPad, leapt to their highest level in nearly 18 years following comments from Goldman Sachs.

The broker said that the firm's royalties are set to soar, sending the share price rocketing 8.21%, or 52.50p, to 692.00p.

Analyst Simon Schafer said that "IMG remains at the heart of some of the most significant smartphone and tablet ecosystems", and forecast a 1,000p rise in the share price over the next year, compared to a previous prediction of 850p.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

He also pointed out that Imagination has the highest growth potential of all European tech groups covered by the the broker.

NR