Broker snap: Cookson forecasts impress

26th Apr 2010 13:02

Cookson's forecast for a first half trading profit of £110m to £115m, 15% to 20% better than in the second half of 2009, got investors excited Monday.The new number is 16% ahead of Panmure Gordon's estimate of £98m, while revenue is now seen topping its forecast by 13%. Global steel production has grown at a faster rate than previously anticipated, as have electronics end-markets, while the precious metals unit continues to benefit from very high levels of reclaim business.Killik Capital reckons other industrial goods companies will be experiencing similar trends and expects earnings momentum to remain positive. "We would therefore remain invested in the sector where our preferred holdings are Melrose and Charter," it said.