Tuesday newspaper share tips: Fever-Tree, John Laing Infrastructure Fund

15th Mar 2016 13:57

(ShareCast News) - Business is booming at Fever-Tree and there is room for further growth, but trading on 40 times' this year's earnings the valuation looks toppy, The Times's Tempus said.The maker of premium mixers for spirits already controls nearly half the market, which is estimated to be worth between £300m to £400m and might be set to reach about £1.6bn, according to EY.Floating at 134p in November 2014 those who got in early enjoyed a ride all the way up to a peak of 694p this year.For the full year the company reported "pretty staggering" margins of 52.1%, aided by its 'investment-light' model and it has signed up another retailer, Marks&Spencer, to its distribution network.That is key for future growth, increasing its footprint in the on-trade and opening the doors to the Australian market where sales rocketed 77% last year.Nonetheless, the shares' price-to-earnings multiple looks 'high' "and lucky investors should think about taking profits", Tempus said."Take profits, the current rate of growth cannot be expected to continue" the tipster concluded.John Laing Infrastructure Fund remains a decent option for income, the Daily Telegraph's Questor column told readers.JLIF owns a portfolio of 58 investments - including hospitals, social housing and schools, after recently purchasing a 40% stake in a project to maintain escalators and electronic doors in the Barcelona metro.That provides it with a steady income from operating and maintaining the buildings, with the value of investments rising by 8% to £867.8 over the year to the end of December or about £950m after its purchase in Barcelona, giving the company a net asset value of approximately 108p per share.Stock in JLIF is now trading at about a 10% premium to its underlying value.The company can afford to distribute a steady stream of dividends because its contracts are multi-year and state-backed.Its shares offer a prospective dividend yield of 5.8%, with the steadily increasing income providing investors with an attractive alternative to rock-bottom rates on savings accounts."Hold", Questor recommended.