Dolmen Butler Briscoe is advising investors to sell Parthus Technology shares at £3.05 because of its high rating and concerns about its failure to win new licensing deals.

Parthus, which develops intellectual property solutions for the mobile appliance market, has enjoyed a good run on the stock market with the share price more than doubling at one stage. But this has now reversed amid more negative sentiment towards the company.

Parthus Technologies is one of the most highly valued stocks compared with more established peers such as ARM Holdings, Rambus and Numerical Technologies. ARM is the company most similar to Parthus but is a more established company with blue-chip technology clients such as Intel, Ericsson, Sony and Lucent.

At current high levels, the brokers are downgrading Parthus to a sell until it sees more licensing deals announced or an increase in the earnings multiples of its peers.