Broker snap: KCOM's divi 'oozes confidence'

26th May 2011 12:25

KCOM's target price has been lifted by almost a quarter by finnCap, after positive preliminary results from the telecoms group, in which the dividend delivery and the guidance "ooze[d] confidence.""After the positive surprise at interims of significantly improved dividend guidance of 3.3p, KCOM's confidence is evident with the over delivery at 3.6p div for the full year, and a maintained 10% div growth guidance," said analyst Andrew Darley.finnCap says that the strength in cash and the dividend were the only real surprises from the full-year performance, but numbers were 'in line' and "complete a genuinely transformational year."Debt of £82m comfortably beat the broker's forecast of £105m and the company's £100m threshold.The target price now stands at 80p, up from 65p previously. The broker still recommends a 'buy'.---BC