Broker snap: Buy Johnson Matthey, recommends Prime Markets

19th Jul 2011 11:09

Prime Markets has suggested buying chemicals group Johnson Matthey, saying that Tuesday's trading statement represents an attractive entry point in the short and long term for investors.The company, focused in catalysis, precious metals, fine chemicals and process technology, said that it continued to make good progress in the first quarter, with adjusted pre-tax profits up by 19% to £98.2m, "principally due to higher demand for products and operational leverage," noted head of dealing Richard Curr."Johnson Matthey is probably best known as a manufacturer of catalytic systems for emissions control from vehicles and industrial processes of autocatalysts," Curr said."Now at an attractive entry point as the shares bounce off the all important 200-day moving average line, there is a short term momentum trade opportunity off the back of today's statement to upper resistance levels up to 2,100p over the next few days."Prime Markets also thinks that, in the longer term, a solid trading performance coupled with lower debt and investment into future technologies should provide upwards pressure to the shares, with the stock trading to year-highs of 2,123p (the broker's target price) and beyond.BC