Friday tips round-up: Ashmore Group, PZ Cussons, Hays

12th Apr 2013 15:47

Emerging-market focused fund manager Ashmore Group startled the market yesterday when it released its latest figures for its funds under management (FuM) in the first quarter. These raced past analysts' expectations, rising by a net $6.7bn, on the back of strong inflows from sovereign wealth funds, the company explained. In any case, Ashmore remains a good way of getting exposure to emerging markets, but growth will not continue at this rate, says The Times's Tempus. As well, such a strong rise in FuM is odd given the company's focus on debt. That runs against the supposed trend in the wider marketplace of a rotation towards equities. Hold, Tempus says. At 23 times' earnings consumer goods giant PZ Cussons enjoys a high multiple. That comes despite intense competition between supermarkets at the moment here in the UK, as well in Australia. In fact, in the latter market the firm has had to outsource the manufacture of its care products to compensate for the price war between the two main supermarket chains. Yet the main potential stumbling block for the shares is Nigeria, from where it sources a third of its earnings. The recent unrest in the country could yet flare up again, Tempus writes. Recruitment outfit Hays' shares leapt on Thursday despite the company revealing a decline in quarterly net fees, amid challenging conditions in several of its main markets, particularly Australia and Germany. Even so, analysts remain somewhat divided. Above all, those who are of a more pessimistic bent highlight that the outlook for economic growth simply cannot support the growth the stock needs to keep pushing higher. The Telegraph's Questor team seems to take their side, pointing out how the company's forward price-to-earnings ratio is forecast to reach 19.7 this year, versus 13.5 last year. Hence, for Questor the shares are still a hold. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.