Broker snap: Telecom Plus upped to a 'buy'

30th Mar 2011 13:41

FinnCap upgrades utility services group Telecom Plus to a 'buy', from 'hold', after "some share price slippage" since February.After a cold winter and the beneficial gas and electricity pricing environment, the group reported pre-close trading update on Wednesday, in line with the broker's expectations (which had been upgraded in February) for the year to end-March. The share price has fallen around 7% since 15 February."The 'budget plan' nature of customer gas and electricity payments has had a sharper working capital outflow effect after the recent cold winters, and it is the availability of that cash to provide the dividend that is key," said analyst Andrew Darley.While the recommendation is upped, the target price stays at 500p.BC