Thursday tips round-up: Britvic, Northern Foods, LSE

16th Jul 2009 06:12

Britvic's shares are now trading on a September 2009 earnings multiple of 11.5 times, falling to 10.4 times next year. With analysts expected to upgrade their forecasts, the current multiple will fall as consensus forecasts rise. The shares are also yielding 4.4pc, which is well worth having. Shares in Britvic remain a buy, says the Telegraph.By Northern Foods' own admission a series of profit warnings issued several years ago put it on the back foot in relation to the market, and as such it has to work that bit harder to convince investors who have had their fingers burnt in the past. The Independent harbours no such concerns, and thinks that an undeservedly undervalued group, in one of the most defensive sectors around, and one that is putting out good numbers, should be an automatic choice for investors. Fill your boots. Buy.For someone who runs a stock exchange, Xavier Rolet is a big believer in bonds. One of the most prominent acts of the new chief executive of the London Stock Exchange since he took over in May has been the purchase by his family trust of £3.2 million worth of his employer's 2019 bonds, which bear an enticing 9.125 per cent yield. The scope for capturing share of the over-the-counter derivatives market is huge, and Mr Rolet is heavily incentivised to succeed. At 676p, or 11 times earnings, buy on weakness, says the Times.Though Burberry is a well-run company, of particular concern is that more of the aforementioned posh people have lost their jobs during this recession, relative to previous downturns. Some of the analysts argue that the stock already trades at a premium to the rest of the sector, even if it is deserved. While Stacey Cartwright, finance director, points out that other watchers reckon there is a discount in the stock, the Independent would take the opportunity to take profits and wait for cheaper levels to buy into Burberry. Hold.Mothercare's shares are trading on a current year earnings multiple of 16, which may seem a bit rich, but this rating is deserved. Growth should be impressive in the next few years and, based on current forecasts, the earnings multiple falls to 14.7 in 2011 then 13.9 in 2012. The dividend yield is just 2.9pc, but there is plenty of scope to raise this payout as it is more than twice covered by earnings. Shares in Mothercare remain a buy, according to the Telegraph.At 49p, Blacks Leisure's shares would respond well to a successful refinancing. However, with a discounted equity raising a distinct possibility and with Blacks forecast to stay loss-making for a further two years, they are a buy only for the brave, says the Times.Despite Nordic Land highlighting the fact that "the Nordic real estate markets have performed significantly better than many other countries, and, in particular, the UK," yesterday, the shares fell a further 8.1 per cent. It is good to see management taking an open approach to the disappointing share price, but the Independent would be tempted to see what the brokers come up with before buying into Nordic Land, especially as the market does not appear to like it very much. Avoid.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.