Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a572145

Expert View: Panmure cuts IMI to 'hold'

Analyst views on IMI, Intertek and Foreign & Colonial investment trust.

 
Expert View: Panmure cuts IMI to 'hold' A round up of the analysts' stock commentary.

Panmure cuts IMI to 'hold'

Panmure Gordon has downgraded shares in IMI (IMI.L), the engineer and Citywire Top Stocks® constituent, to ‘hold’ from ‘buy’. Analyst Oliver Wynne-James was left uninspired by the stock’s prospects after its recent strong run and the full-year results on Friday. These showed a better-than-expected increase in 2011 profits from the maker of power generation equipment and valves for drinks dispensers. Chief executive Martin Lamb forecast organic growth of 3-4% for this year but said this would be ‘supplemented’ by acquisitions.

Wynne James said: ‘Investors in this sector like to chase growth but IMI's 2012E prospects are forecast to be sluggish and it may have to work hard to preserve the hard-fought gains achieved since 2009.’ Although he raised the target price from £10.20 to £10.80 he cut his recommendation to ‘hold’, saying: IMI is a value stock in our view and can be re-assessed at lower share price levels.’
IMI shares closed nearly 2%, or 20p, lower at 971p.

Intertek pleases Seymour Pierce

Shares in Intertek (ITRK.L) raced 5%, or £1.10 higher, to £24.24, after the British testing firm yesterday pleased the market with a 23% rise in full-year profits. The company, which tests products from toys and clothes to oil and renewable technology, said it made adjusted pre-tax profits of £260.1 million in 2011, above consensus analyst forecasts of £249 million.

Kevin Lapwood of Seymour Pierce said: ‘This was the highest reported levels of growth in the [support services] sector so far this year and was due to the strength of global commodities markets.’ He said Interek benefited from the defensive qualities of its business model and favourable long-term trends and a broad spread of activities. With the shares trading at 18.4 times forecast 2012 earnings, he retained an ‘add’ recommendation on the stock.

Foreign & Colonial not special enough for Numis

Numis viewed the full-year results from Foreign & Colonial investment trust as ‘solid rather than exceptional’. The portfolio of the £2.9 billion global investment company fell 4.8% last year, slightly less than its benchmark. The main contributor to performance was the private equity holdings in Pantheon and HarbourVest funds. Total cash distributions from private equity investments more than doubled to £67 million. Overall revenue grew 20.1% helped by the resumption of BP dividends. A final dividend took the total for the year to 7.1p, an increase of 5.2%.

Numis said: ‘it is a low cost way to gain global equity exposure with a TER [total expense ratio] of 0.56% of average net assets. It is differentiated from its peers by the private equity portfolio which enhanced returns in 2010/2011. The fund’s performance record has improved after a difficult period during 2008/09, but it remains solid rather than exceptional. Since the year end the NAV total return is up 8.7% in 2012 year to date, which is broadly in line with the benchmark.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Look up the shares

  • IMI PLC (IMI.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Intertek Group PLC (ITRK.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the investment trusts

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

FTSE rallies 100 points as 'patient' Fed pleases

by Gavin Lumsden on Dec 18, 2014 at 14:50

Sorry, this link is not
quite ready yet