Thursday tips round-up: BAT Industries, Fenner, Stagecoach

29th Apr 2010 06:37

British American Tobacco signalled that consumers continue to cut back on smoking cigarettes globally, despite the recession drawing to a close in many of its markets.BAT shares trade on a 2011 price-earnings ratio of 11.1, which is a premium to rival Imperial Tobacco. Therefore, despite the expectation that BAT will continue to grow revenues, it is time to look for less expensive share habits. Sell says the Independent.Rubber belts may not necessarily set hearts and pulses racing, but investors in Fenner, a belt maker, have had a gay old time in the past 12 months, with the shares putting on a remarkable 369% The Independent reckons teh big gains have now been made in terms of Fenner's share price but still expect upwards momentum, while the dividend yield is also decent, making the company worth a punt. Buy.Stagecoach's performance during the recession has been unexpectedly buoyant, Analysts raised full-year profit forecasts by 8% after yesterday's update. The unanswered question is the extent to which Stagecoach will participate in its sector's consolidation. Stagecoach ? which had a move for National Express Group rebuffed last year ? does not intend to be left in the sidings. At 197p, up 2¾p, or 11 times upgraded 2010 earnings, hold on says the Times.Yesterday it was the turn of Bodycote, the heat treatment specialist, which said that full-year earnings should be "towards the upper end of the range" of City forecasts. The shares trade at 25 times 2010 earnings, but the prospect of operating margins, now 7%, exceeding their 15% historical peak, and the trend for higher energy costs to accelerate the outsourcing of heat treatment work, makes the shares worth buying on weakness says the Times.Indonesia-based palm oil group REA has stopped hedging, which will boost this year's profits and it has diversified into open-cast coal mining, with volume production due to begin this year. At 494½p, or 8 times the 2010 forecasts, tuck away for the long term says the Times.Speciality chemicals group Croda has made a strong start to the year, though there was a note of caution in yesterday's statement. The shares remain a buy, but they are unlikely to rise as fast as they have over the last 12 months after such an impressive recovery, the Telegraph suggests.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.