Broker snap: Panmure keeps the faith with Bodycote

10th Jul 2009 13:00

Engineering firm Bodycote was the worst performing FTSE 250 stock on Friday morning after issuing a profit warning, but the stock is turning into a highly geared recovery play, Panmure Gordon reckons.The broker has retained its "buy" recommendation on the stock despite the company reporting "a deeper revenue collapse and a severe cost mismatch" in the first half of the year.Panmure Gordon said that the company has a £225m facility which matures in August 2010, "and the refinancing could prove more challenging than expected", leading the broker to speculate that a fund raising may be on the cards later this year.