Imagination Technologies provides growth attractions for higher risk investors

As Imagination Technologies updates the market, Helal Miah, investment research analyst at The Share Centre, explains the attractions for higher risk investors.
 
"Investors will be pleased to see that the momentum from the first half of the year has continued for Imagination Technologies, despite a weak economic environment. New product launches and the traditional holiday period uplift has seen royalty revenue continue its strong growth rate.
 
"Imagination Technologies has set a sales target of one billion graphics processing units per year within five years, and although it is ambitious it is quite possible at its current growth rate. The company is upbeat about major brands launching smart TVs and incorporating the company's graphics technologies.
 
"While the economic environment has had an impact on the sales of digital radios investors will be encouraged to hear some of its products have been very well received at the latest rounds of technology shows and industry events.
 
"We believe the company is well positioned to benefit from the further adoption of gadgets and technologies by the consumer and management has reiterated their confidence in meeting the target of shipping one billion units before the end of 2016. We recommend Imagination Technologies as a ‘buy' for higher risk investors seeking capital growth. Investors should be aware there is no yield available and there is unlikely to be for some time."