Tuesday tips round-up: ICAP, Regus, AG Barr

23rd Mar 2010 06:40

ICAP's discontinued cash equities business clocked up operating losses of about £25m in the year to the end March - more than the £18m loss that the market was expecting, according to broker forecasts. On 12.6 times forecasts for 2011, ICAP looks fairly valued. But despite the uncertainties, this is a high-quality business. Hold for now says the Independent.Regus is regaining its crown ? at least in the City, where tentative signs of recovery at the world's largest serviced office provider pushed its shares up 13% yesterday. With cyclical and structural growth set to work in its favour, at 100½p, or 14 times 2011 earnings, buy on weakness suggests the Times.Regus shares are by no means cheap adds the Independent and, despite the impressive profits, year-on-year revenues were broadly flat. But the dividend yield was already a promising 2.5% before yesterday's increase, and the stock could rise further. Buy says the paper.At yesterday's 910p, shares in AG Barr, the Scottish soft drinks maker, are up by nearly a third since September. The significant minority shareholding of the Barr family makes it an unlikely takeover target. However, at 17 times current-year earnings and with net debt of only £22m, the shares should be held says the Times.Barr's net debt fell from £31.3m at the end of the previous year to £22.1m and the soft drink market looks relatively recession-proof. House broker Investec has the group on 9.4 times 2011 forecast earnings, which is an undemanding rating. There are one or two uncertainties around, it's true, but these shares are solid. Buy says the Independent.Payment processor DataCash has much to commend it. A growing roster of blue-chip clients (non-gaming customers include Boots, Tesco and ticketing for the O2 stadium) and the inexorable advance of e-commerce mean it now processes 21m transactions a month, against 235,000 at float ten years ago. Prices for processing payments (now 5.9p a transaction) continue to fall, but rising volumes should more than offset the hit. At 187½p, or 13 times 2010 earnings, the shares are a buy says the Times.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.