Broker snap: Strong first quarter for Dignity

16th May 2011 11:23

First quarter growth at Dignity, the UK's only listed funeral care provider, was stronger than expected, according to UBS, but the broker maintains its 'neutral' rating and keeps its outlook unchanged.January volumes were strong as higher-than-average deaths late in December resulted in a "raised level of funeral services and cremation activity at the start of the year," said analyst Isabel Green.However, Green notes that the broker does not expect this increased level of activity or the "optically improved level of market share" to be maintained as Dignity reports that the growth rate in the second quarter has been at a more normal level.Nevertheless, the target price is raised to 750p, from 735p.---BC