Home
Investment
News & Views
Company News
news storage
Broker snap: Good will to Hunting
Wed, 08 Feb, 2012
INVESTMENT NEWS
Company Search
Search QCK.COM
Investment Home
News & Views
Top Stories
Charting
Company Search
Watchlist
Market Reports
Market Buzz
Company News
Economic News
New Issues
Other News
Broker snap: Good will to Hunting
Thu, 26 Aug 2010, 11:11:00
FinnCap believes interim results from <b>Hunting </b>leave the oil services group well placed to achieve the broker's projected full year numbers which have been upgraded to take into account the recent Innova-Extel acquisition. "The outlook statement points to firming end markets, stating that despite the Gulf of Mexico issue the second half looks encouraging. The group has increased capital expenditure on a number of projects as well as making some smaller bolt on acquisitions," the broker notes. Since the period end the group has also acquired Innova-Extel for $125m, prompting FinnCap to increase its 2010 profit before tax forecast for the group to £40.7m, while next year's forecast moves up to £55.7m. "There may be some further scope for uplift on today's decent interim results,"suggests FinnCap analyst David Buxton. "The shares have outperformed over recent months and now trade on a P/e [price/earnings] of 29x for the current year dropping to 20.8x next year. The important ex-cash basis puts Hunting on just 12x for 2011, versus the peer group on 13.6x. Alternatively an EV [enterprise value] /EBITDA [earnings before interest, tax, depreciation and amortisation] of 5.0x for 2011. We therefore continue to rate the shares a buy," the broker concluded. Westhouse Securities is another broker that has Hunting on its "buy" list. It described the results as "a solid performance from Hunting, with the earnings enhancement from the Innova-Extel acquisition still to come."
©2004-2009 QCK.com
