Tuesday tips round-up: Aggreko, Bovis, Consort Medical...

15th Mar 2011 06:55

Aggreko, the temporary power provider, saw its shares climb 5.5% amid expectations that it will be called in to help supply electricity to Japan's embattled population following the devastating earthquake and tsunami.The company said it stood ready to equip the country with self-contained gas and diesel generators. The group has already contacted Japanese authorities to offer help and said it was ready to deploy equipment as "rapidly as possible if needed". The shares are trading on a full valuation at close to 19 times 2011 earnings, leaving analysts divided, but the Telegraph says now is the time to buy.With the latest warning from care home operator Southern Cross that its trading outlook "has seen a decline" since February 8, some analysts scrapped their annual forecasts "until we have clarification of the extent of the deterioration". Even at 6p, there is a lot of work for the company's management to do before investors should consider Southern Cross shares. Avoid says the Telegraph.Housebuilder Bovis shares are trading on about 80% of net asset value. This is a relatively small discount, and there is better elsewhere, such as Bellway and Persimmon trading in the 70s and even, for the bold, Barratt Developments on less than half net asset value, says the Times.Yesterday, St Ives announced the sale of its loss-making magazine printing side. Magazines have been suffering from the move to the internet and the recession, which has left excess capacity driving down prices. Today, interim figures for the half-year to end-January will indicate a further recovery. The shares, up 9.6% yesterday, sell on less than nine times' this year's earnings. This does not sound expensive. A strong hold says the Times.Consort Medical has two core divisions. King Systems produces devices to help patients breathe during operations, Bespak Pharmaceutical devices that deliver drugs, often in measured doses. The shares have had a strong run since the summer and tailed off a touch yesterday, but they still sell on almost 13 times' this year's earnings. About high enough for now says the Times.Next shares now only trade on a forward earnings multiple of 8.4 and the company is expected to continue delivering healthy earnings per share growth. Its share price should also be supported by its ongoing share buyback programme. But with the outlook for its high street stores looking tough, be cautious until the outlook on a sustained recovery in consumer spending is clearer. Hold says the Independent.WS Atkins's £785,000 acquisition of RWE nPower's Scottish consultancy and technical support scheme may be small, but it is a significant move for the group. It brings an extra 30-odd people into the engineering and design company, and is right in line with the group's long-term strategy to expand its activities in the energy sector. On 8.4 times forward earnings, with a dividend yield above 4%, buy says the Independent.Brady makes systems software for the metals, energy and soft commodities sectors. And given the uptick in capital expenditure in those markets, it is no surprise that the group issued what were strong full-year figures yesterday. Adjusted for cash, Brady trades on multiples of 11.4 times forward earnings for this year, and under 10 times forward earnings for next year. That leaves it an unjustified discount of around 15% to its peers. Buy sys the Independent. 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.