Friday tips round-up: Autonomy, Mothercare, Petrofac

17th Jul 2009 06:47

Autonomy's numbers were undoubtedly impressive: pre-tax profits were up a record 64% on this time last year, earnings per share leapt 61%, and revenues jumped 55%. The chief executive Mike Lynch said the group would rather be cautious on the future and build expectations as the year goes on, but with much of Autonomy's business being regulatory driven, the market was disappointed by Dr Lynch's less than gung-ho outlook. Over the long term, Autonomy is a very good bet, but we would pause at this level, expecting the stock to drift for a time. Hold for now says the Independent.Since the bottom of the tech stock bear market in 2002, it has always been right to buy Autonomy on the dips ? and at £12.05, the shares are now down more than one fifth from May's high. In the belief that yesterday's setback is a seasonal wobble, rather than a long-term reverse, that remains the case says the Times.Mothercare finished yesterday at its year high, but appears to be running out of steam. Mothercare is a quality stock, but investors will probably be able to get it cheaper in the not too distant future. Hold for now says the Independent.Mothercare shares are trading on a March 2010 earnings multiple of 16 times, which is high. However, with such solid growth prospects the premium rating of this company is deserved says the Telegraph.Buying Trafficmaster shares is a punt. Not the Independent's words, but those of the group's finance director, Tim Coleman. And Mr Coleman is spot on, the paper says. Economic conditions are not with the company and the Independent sees no sign of that changing. Cautious hold.The first-half trading update from Henderson yesterday was not as bad as the 8% fall in the fund manager's shares might suggest. But, at 95p, up more than two thirds since January, the shares remain geared to stock market levels. At 15 times 2009 earnings, they have run far enough for now. Pass says the Times.Yesterday, Spectris, the mid-cap maker of precision instrumentation and controls, became the latest industrial engineer to give a downbeat assessment of current trading. At 519p, down 6%, or 12 times lowered 2009 earnings and a solid 4.5% dividend yield (the payout has not been cut in 20 years), hold on says the Times.Vedanta shares were recommended by the Telegraph in December at 543p and the shares are now up an impressive 140%. The stance on the shares, which are yielding 1.5%, remains hold because of future growth prospects, but the shares look reasonably valued for now, the paper adds.The news from oil service group Petrofac keeps getting better and better, with yet another substantial contract win unveiled yesterday. The shares hit a 12-month high yesterday after the company said it and its partners had secured a $2.1bn contract to build a natural-gas-to-liquids (NGL) train in Abu Dhabi. Petrofac share of the contract was $1bn. The shares are trading on a December 2009 earnings multiple of 13.1, falling to 9.9 next year. The shares are yielding 2.5%. Buy says the Telegraph.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.