Brighter long-term future on horizon

Merrion Stockbrokers has suggested that Horizon Technology shares could outperform the broader technology sector over the next 12 months, albeit from a weaker base. In its latest report on Horizon, Merrion says the value of the company hinges on the outlook for its three divisions - Internet services, Internet infrastructure and e-business solutions. Reduced capital spending by UK telecom providers, likely cutbacks in corporate spending on IT in Europe and the US, and the risk of an economic slowdown in the Republic will depress the group's earning prospects. Merrion has downgraded its growth forecasts in the medium term because of these concerns but suggests the stock could still appreciate sharply.