Avon Rubber (AVON)

Sector:

Defense and Aeronautics

Index:

FTSE 250

2,664.00p
   
  • Change Today:
    -36.00p
  • 52 Week High: 4,625.00p
  • 52 Week Low: 2,660.18p
  • Currency: UK Pounds
  • Shares Issued: 31.02m
  • Volume: 118,536
  • Market Cap: £826.46m
  • RiskGrade: 186

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.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Avon Rubber Market Data

Currency UK Pounds
Share Price 2,664.00p
Change Today -36.00p
% Change -1.33 %
52 Week High 4,625.00p
52 Week Low 2,660.18p
Volume 118,536
Shares Issued 31.02m
Market Cap £826.46m
RiskGrade 186

Avon Rubber Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.24% below the market average96.24% below the market average96.24% below the market average96.24% below the market average96.24% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
38.06% below the market average38.06% below the market average38.06% below the market average38.06% below the market average38.06% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Income
73.99% below the market average73.99% below the market average73.99% below the market average73.99% below the market average73.99% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
33.63% below the market average33.63% below the market average33.63% below the market average33.63% below the market average33.63% below the market average
28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avon Rubber Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Aug-21 11-Feb-21
Paid 03-Sep-21 12-Mar-21
Amount 14.30¢ 18.06p

Trades for 18-Jun-2021

Time Volume / Share Price
16:47 353 @ 2,664.00p
16:35 51,645 @ 2,664.00p
16:30 838 @ 2,670.00p
16:29 1 @ 2,678.00p
16:29 0 @ 2,678.00p

Avon Rubber Key Personnel

CEO Paul McDonald
CFO Nick Keveth
Chair Bruce Thompson

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