Tuesday tips round-up: Shanks, Cairn Energy, YouGov
Shanks sits in a defensive niche and after the completion of the private equity takeover of Biffa will be the last fully listed representative of its sector. However, after yesterday's 8 per cent rise to 260p, or 19 times current year earnings, the near-term potential is priced in. Hold, says the Times.
If the oil price stays as high as it is, Cairn Energy will be a safe bet for investors, but any significant gains are likely to come from a bidding war, and that could provide a handsome payday. Hold, says the Independent.
YouGov has a comforting £14 million of cash. At 149p, or 19 times current-year forecasts, its shares are inexpensive given 25 per cent earnings growth. Buy on weakness, says the Times. The Independent agrees and also says buy.
The Telegraph believes VT Group will continue to deliver but for now believes the stock is fairly priced. Nevertheless, investors should avoid any rush to take profits and should hold for the long run.
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Last week's disclosure that Wal-Mart has given Optos the go-ahead to market its P200 device to 2,250 independent in-store opthalmology centres in the United States is encouraging. However, with forecast profits this year of a modest $2.9 million, Optos, at £13.10, still has a lot to prove. Avoid, says the Times.
There is usually something good to say about a firm's prospects, and while Neville Porter has stepped back into what it describes as its core markets of horse and greyhound racing and football, it is very difficult to imagine the company in the winner's enclosure any time soon. Sell, says the Independent.
Trading on around 15 times next year's earnings, the Telegraph believes Air Partner's shares offer a good bargain.
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