Tuesday tips round-up: HSBC, Taylor Nelson, Close Brothers
On 10 times 2008 earnings with a 6pc yield, HSBC is trading at a premium to rivals - reflecting its resilience and strong position in the fast-growing emerging markets. But in the current climate, buyers had better beware. Avoid, says the Telegraph.
Longer term, Taylor Nelson Sofres could draw interest from the likes of WPP, but at 180½p, or nearly 11 times 2008 earnings, and net debt of £354 million, it is hard to see what will drive the shares higher for now. Avoid, writes the Times.
Close Brothers shares lost further ground, making a fall of 36 per cent since early January. Avoid for now, says the Independent.
Keller is now more geographically diverse than at any time in its history: non US profits now account for 44 per cent of the total, against 28 per cent two years ago. American worries may continue to weigh on sentiment, but at 631½p, or 6.6 times current-year earnings, the shares remain inexpensive. Hold, writes the Times.
The Independent thinks Keller shares, backed by strong levels of work due to come through, look undervalued on just over 6 times forecast earnings. Buy.
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Trading on a forward-earnings multiple of a little over 10 times, WSP looks increasingly good value. Buy, says the Telegraph.
Senior is selling into markets with long-term delivery schedules unlikely to be derailed by concerns over the credit crunch. Selling at just over 11 times expected earnings the shares look attractive, says the Independent.
Paddy Power shares, 39 cents higher at €21.60, are trading on a 2008 multiple of about 16. Worth a flutter, says the Times.
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