Wednesday tips round-up: Carr's Milling, Dairy Crest

16th Jul 2014 08:15

Investors should 'buy' shares of Carr's Milling Industries, according to the Questor column in The Telegraph, which believes that the stock is "overlooked and undervalued".The paper explained that Carr's Milling is often overlooked by the market given that analysts struggle to put a value on the company, which is an "odd mix" of flour milling facilities, a nuclear robotics engineer and an animal feed business.Questor said that the firm's third-quarter trading update on Tuesday showed a "strong performance across every division". What's more, the shares are rated on a "fairly conservative" 13.8 times earnings - the multiple falls to 12.1 times next year - which is why the paper rates the stock as a 'buy'.Meanwhile, Questor has rated Dairy Crest as a 'hold' but said that the stock's "chunky" 5% dividend yield is "well worth a closer look".The dairy group said on Tuesday that full-year expectations remain unchanged, with analysts currently estimating a 21% increase in pre-tax profits to £65.4m."Questor thinks those forecasts should be manageable, in which case the shares - trading on 11.5 times forecast earnings, falling to 10 times next year - are fairly valued," the paper said.However, it believes the dividend is the "key attraction" of the shares.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.BC