Imagination downgraded by N+1

N+1 Singer has downgraded its recommendation on Imagination Technologies (LON:IMG) to sell from buy after the company confirmed that it has been notified that Apple intends to stop using the group’s IP in its new products in 15 months to two years time.

The broker added: “If the group is unsuccessful in challenging Apple’s position, we would expect the group to need to make significant operational changes to align the cost base to the new revenue profile.

“Given the uncertainty around its largest revenue stream, and current net debt position, we move to Sell.”

N+1’s target price now stands at 100p per share.

At 3:05pm: (LON:IMG) Imagination Technologies Group PLC share price was -169.62p at 98.63p

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