Broker snap: Brokers impressed after Fenner ups guidance

6th Sep 2011 12:17

Brokers Prime Markets and finnCap have confirmed their buy recommendations on Fenner, after the conveyor belt maker conveyor belt maker announced on Tuesday that numbers for the year ended 31 August are likely to be ahead of market expectations.The reinforced polymer technology upped its guidance after strong growth in both the Conveyor Belting and Advanced Engineering Products divisions."The outlook for Fenner's markets remains robust, and geographic and product/service additions should continue to accelerate growth. The group appears less exposed to the possibility of weakening industrial markets," said finnCap analyst David Buxton.FinnCap keeps its 450p target price.Meanwhile, Prime Markets' head of dealing Richard Curr said, "Of course no company is immune to a downturn in the global economy, but Fenner offers a particularly resilient business model, and given that its products sell to such a broad cross section of industry it has a better chance than most of riding out any downturn."Prime Markets expects Fenner to return to the 374p level in the next five-10 days.By 12:17, shares were 5.51% higher at 352.2p.BC