Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a726079

The Expert View: Tesco, Schroders and Next

by Chris Marshall on Jan 06, 2014 at 05:01

Arrow’s ‘superior returns’ are sustainable

Analysts remain confident in the prospects for Arrow Global (ARWA.L), the debt recovery company that takes on portfolios of debtors at discounted prices and tracks them down.

Numis’s James Hamilton said the company was ‘on target’ after a pre-close trading update confirming that trading was in line with expectations for 2013 with a ‘strong pipeline of portfolio acquisition opportunities ahead’.

Hamilton, who rates the recently-listed company as ‘add’ (half way between hold and buy), pointed to Arrow’s unique skill set in a ‘competitive, cyclical industry’.

‘Key to Arrow's superior return is its ability to enhance the number of paying customers from the portfolios it acquires. Arrow typically enhances the number of paying customers by 50% after the vendors and a number of DCAs have already worked hard to collect on these accounts.

‘We believe the data and analytical skills of Arrow are very hard to replicate and consequently make the group's superior returns sustainable.’

Canaccord Genuity’s Robin Savage maintained his ‘buy’ recommendation on the shares.

Arrow fell 0.6% on Friday, to close at 260p.

Sign in / register to view full article on one page

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:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Schroder UK Alpha Plus A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove UK Opportunities B Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the shares

  • Tesco PLC (TSCO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Arrow Global Group PLC (ARWA.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rio Tinto PLC (RIO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Next PLC (NXT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroders PLC (SDRt.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Hargreaves Lansdown PLC (HRGV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aberdeen Asset Management PLC (ADN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Richard Buxton
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Julie Dean
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet