Morgan Advanced Materials (MGAM)

Sector:

Electronic and Electrical Equipment

Index:

FTSE 250

349.00p
   
  • Change Today:
    -3.50p
  • 52 Week High: 358.00
  • 52 Week Low: 210.00
  • Currency: UK Pounds
  • Shares Issued: 285.37m
  • Volume: 568,638
  • Market Cap: £995.94m

Berenberg says 'buy' Diploma for earnings momentum

By Sean Farrell

Date: Wednesday 20 Jan 2021

LONDON (ShareCast) - (Sharecast News) - Berenberg upgraded Diploma to 'buy' and reduced Morgan Advanced Materials and Electrocomponents to 'hold' as the broker homed in on earnings momentum for UK industrial groups.
Most companies are trading at or near record high valuations after a rally in late 2020, Berenberg said. Investors should seek out companies with earnings momentum from mergers and acquisitions, overly cautious expectations or end markets that revive faster than expected, the broker said.

"With synchronised global growth on the horizon, the industrials sector is poised for a significant recovery in financial performance," analyst Anthony Plom wrote in a note to clients. "However, we think this strong recovery is already being priced into many share prices. We are therefore convinced that earnings momentum will remain a key factor in share price performance in 2021."

Berenberg listed Ceres Power, Diploma, Rotork, RHI Magnesita and Oxford Instruments as its top 'buy' picks, upgrading Diploma from 'hold' as a "rare entry point into a multiyear compounder". Its least-favoured stocks, all rated 'hold', are Avon Rubber, Morgan and Electrocomponents, both cut from 'buy'.

The broker said there was always money to be made in the UK industrial sector with the top share outperforming the worst by about 150% each year. Its top picks each have 40-100% upside on the bull case and least-preferred names have 20-40% downside in a bear-case scenario, Plom said.

On end markets, Berenberg fabvours clean energy, semiconductors, general manufacturing and steel with oil and gas possessing the biggest surprise potential. Civil aerospace and coronavirus-related healthcare look less positive, it said.

Oxford, Spectris and Rotork have the most options for M&A and private equity firms awash with cash may attempt takeovers, Plom said.

Aside from its top picks Berenberg said consensus expectations appeared conservative for RHI Magnesita, Vesuvius, RPS Group, Vitec and Hill & Smith.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

MGAM Market Data

Currency UK Pounds
Share Price 349.00p
Change Today -3.50p
% Change -0.99 %
52 Week High 358.00
52 Week Low 210.00
Volume 568,638
Shares Issued 285.37m
Market Cap £995.94m

MGAM Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
26.57% above the market average26.57% above the market average26.57% above the market average26.57% above the market average26.57% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
46.64% above the market average46.64% above the market average46.64% above the market average46.64% above the market average46.64% above the market average
29.73% below the sector average29.73% below the sector average29.73% below the sector average29.73% below the sector average29.73% below the sector average
Income
25.20% above the market average25.20% above the market average25.20% above the market average25.20% above the market average25.20% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
41.88% below the market average41.88% below the market average41.88% below the market average41.88% below the market average41.88% below the market average
64.71% below the sector average64.71% below the sector average64.71% below the sector average64.71% below the sector average64.71% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 8
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MGAM Dividends

  Latest Previous
  Final Interim
Ex-Div 29-Apr-21 19-Nov-20
Paid 21-May-21 11-Dec-20
Amount 3.50p 2.00p

Trades for 18-Jun-2021

Time Volume / Share Price
16:57 186 @ 349.00p
16:47 1,800 @ 349.00p
16:46 186 @ 349.00p
16:35 415,906 @ 349.00p
16:29 1 @ 350.50p

MGAM Key Personnel

CEO Pete Raby
CFO Peter Turner

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