Thursday tips round-up: Home Retail, Standard Life, Aegis
Even after yesterday's leap, Home Retail shares trade at nine times current-year forecasts and offer a safe 5.7 per cent yield. Near-term pressures remain, not least from Homebase's operational gearing, but at 264p, the shares are worth buying on weakness, says the Times.
The Independent thinks that Home Retail is a solid retail stock, but says that investors buying today are likely to lose money. Sell.
For shareholders still holding their demutualisation stock there is little reason to sell at current levels. But with Standard Life sitting at a premium to its UK peers - at 250½p, it is the best-performing UK life insurer over the past three months - neither are there compelling grounds for first-time investors to buy. Hold, says the Times.
Morgan Stanley says that Aegis' performance "gives the market further confidence that advertising is not weakening". Buyers certainly thought the stock was worth a punt yesterday as the share price jumped by 7.7 per cent. Buy, writes the Independent. Meanwhile, the Telegraph says investors should hold for the longer term.
At 250½p, or 15 times current-year earnings, Fenner sits at a premium to its sector, but a deserved one. Hold, says the Times.
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BBA Aviation is a solid operator in its sector, although recent share performances should not really inspire potential buyers. The clincher for any investor would be the hope of a buyout. Hold for now, writes the Independent.
Brit Insurance now trades at 6.5 times forecast earnings - in line with the sector. However, it is yielding 7.6pc, which is well ahead of most of its peers. There is no reason to suspect even in these tougher market conditions the company will turn its back on its policy to pay out a minimum of 50pc of earnings and at least 15p in dividends each year. The wind has changed - now is the time to start picking up the shares. Buy, says the Telegraph.
After Bodycote's surge yesterday, there appears little room for further price appreciation. Hold, says the Telegraph.
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