Friday tips round-up: BAE Systems, Tomkins, Galliford Try
Yesterday's full-year results were the last under chief executive Mike Turner, who will step down later this year. He will be able to look back on an achievement of leaving BAE Systems in its best shape for years.
With that in mind, the forward earnings multiple of around 13.5 times makes the shares look good value, particularly given that is a significant discount to the US rivals the company should now be measured against. Buy, says the Telegraph. The Times agrees and also says Buy.
As expected, Tomkins held the final dividend at last year's level providing strong support for the shares which are trading on an attractive yield of 7.3 per cent. Buy, says the Independent. The Telegraph adds that the stock is beginning to look attractive again - particularly as regards income - and is worth further investigation.
Although Galliford Try has a strong and growing presence in the public sector, sentiment remains dominated by its exposure to housebuilding. At 5.1 times 2008 earnings the shares are due for a bounce but not yet. Hold, says the Independent.
(Article continues below)Advertisement
BATM stands to benefit greatly if the big telecoms groups upgrade their networks. The market is estimated to be worth $3bn (£1.5bn). The shares, 765p at their peak in April 2000, rose nearly 11 per cent yesterday. A recovery play, says the Independent.
Although the combined stake of 62 per cent held by the Reuben brothers and Dawnay Day means the stock is relatively illiquid, it does provide Premium Bars & Restaurants with financial firepower. However, with the shares at 155p, or 27 times next year's earnings, there will be better times to buy, says the Times.
Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
