Friday tips round-up: Kingfisher, Colt Telecom, Capita
Kingfisher issued its second-quarter trading update yesterday, topping most analysts' expectations. With the Office for National Statistics also saying yesterday that retail sales rose in June, the group should be feeling confident about the rest of the year.Kingfisher probably deserves a small premium and, while some may want to wait for a bit of softening, the Independent reckons Kingfisher shares are worth buying, even at this level. Buy.
China remains a drag on Kingfisher but the full effect of rationalisation has yet to feed through and start-up losses from Castorama in Russia continue to fall. At 209˝p, or 16 times earnings, the shares are at a two-year high — but recovery has further to run. Buy on weakness adds the Times.
After February’s €201m fundraising, Colt Telecom's balance sheet has never been in better shape, boasting net cash of €243m. That strength and rising cashflow explain why it is contemplating acquisitions for the first time in its 17-year history. But at 119˝p, or nine times next year’s earnings on broker estimates, the shares are no longer cheap — and, unlike those of BT, do not come with a dividend. Pass says the Times.
Capita's management cannot think of any substantial risks facing the outsourcing company, stressing that it benefits in a downturn by telling the private sector and the government that it can save them money. Target revenues for 2010 are already 90% booked. Capita should still be a core bet. Buy says the Independent.
Today's Headlines
Capita Group (CPI) | Price: 695.00p | Change: -2.32%
Investment Column:Capita Group
The Independent | 24-Jul-2009
Questor :Capita Group
Telegraph | 24-Jul-2009
Compass Group (CPG) | Price: 326.25p | Change: -7.51%
Questor :Compass
Telegraph | 24-Jul-2009
International Personal Finance (IPF) | Price: 117.75p | Change: 47.02%
Investment Column:International Personal Finance
The Independent | 24-Jul-2009
Kingfisher (KGF) | Price: 209.50p | Change: 1.70%
Investment Column:Kingfisher
The Independent | 24-Jul-2009
Tempus :Kingfisher
Times | 24-Jul-2009
Scottish & Southern Energy (SSE) | Price: 1,136.00p | Change: 0.26%
No comments:
Post a Comment