Broker tips: Man Group, Thomas Cook, ASOS

30th Sep 2009 11:46

Man Group's fan club was out in force after an upbeat trading statement from the hedge fund manager on Wednesday.Evolution Securities rates the shares a 'buy', taking the view that the worst is behind Man now, with funds under management growing and redemptions declining.'We retain our buy recommendation as, with positive momentum developing, we believe Man's growth potential is not currently recognised at 13.6 times 2010 earnings per share,' Evolution analyst Michael Sanderson said.Singer Capital Markets is also a fan, saying the news on current trading was in line with Singer's expectations while the positive noises on the outlook front 'all sounds very positive for shareholders.'The trading update from travel group Thomas Cook received a mixed reception, however, despite the company talking up a strong finish to the summer season.Astaire & Partners analyst Mark Brumby said the company is 'doing pretty much everything right' but 'economic uncertainty and the belief that consumers will scrutinize large-ticket items of expenditure very closely next year lead us to rate the shares a hold.'Panmure Gordon retains its 'buy' recommendation, however, saying the shares are underpriced on a projected 2010 earnings multiple of 7.5 and supported by a dividend yield of 4.5%. The broker has a 310p price target for the shares.The premium rating of online shopping firm ASOS requires earnings estimates upgrades, in the view of Charles Stanley, and Wednesday's AGM statement will not prompt analysts to bump up their forecasts, the broker reckons.'We ... note that the number of active customers (defined as having shopped within the past 6 months) has remained static at 1.2 million i.e. the same as reported in January 2009. If we were to assume that ASOS has had considerable success in gaining new customers in international countries (which has in turn been the principal driver of recent group sales growth) then the number of UK-based active customers has reduced in recent months, which hints at the some of the key issues facing ASOS in the UK,' Charles Stanley analyst Peter Smedley speculates, adding that increased competition and reduced disposable income among its core 16 to 34 year old clientele may be taking its toll.