Sunday share tips: Associated British Foods, SABMiller, Keywords Studios

19th Apr 2015 13:46

Buy shares in Associated British Foods, the owner of the Primark budget fashion retail chain, wrote Danny Fortson in the Sunday Times. This autumn, Primark will open its first location across the pond in Boston, with seven more planned in the States and no tweaking of its offering to American tastes in view of the US consumer love of shopping for budget clothes in big box stores, such as Target. Credit Suisse last month cut its forecasts but still set a higher target price at £32.50. America will be a key test, yet something tells me Primark will go down a storm there, Fortson concluded.Shares in SABMiller are a 'hold', said Questor in the Sunday Telegraph. The drinks maker enjoyed a strong finish to its financial year last week, with Africa and soft drinks contributing particularly in the fourth quarter, but developed beer markets remaining a tougher place to be. Expectations of full-year profits of $4.86bn and earnings per share of 102 cents look easily achievable given the rising sales, strengthening emerging market currencies and falling commodity prices. However, the shares trade on 24 times forecast earnings per share, which is expensive for a company only increasing profits and earnings by single digits.AIM-listed Keywords Studio appears undervalued, the Mail on Sunday's Midas column said. The company, which listed on the junior market in 2013, translates video games into different languages from 15 offices around the world. The computer games industry is growing fast and as games become more complex, more translation work is being outsourced. Chief executive Andrew Day last week unveiled maiden full year results showing sales up 130% to €37.3m and profits more than doubled to €5.1m. He aims to build Keywords into a company with revenues of at least €200m over the next five years.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 and 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.