LONDON (ShareCast) - Daily Mail & General Trust is trading on 10 times forecast earnings, against a sector average of 15. Goldman Sachs, Citigroup, Numis and Blue Oar Securities have all been issuing "buy" notes recently. The Sunday Telegraph agrees. Buy.
GlaxoSmithKline has one of the best pipelines of new medicines in the industry. Its shares are also attractive from an income perspective as its dividend is well supported. The Sunday Telegraph expects that, over time, the pharmaceuticals sector will begin to re-rate in the way the telecoms sector has done over the past year. GlaxoSmithKline is still undervalued – buy.
Shares in BPP (738p), the professional training company, have been fairly resilient to the broader downwards pressures of the stock market in recent months. Analysts have target prices stretching as high as 940p, suggesting upside of some 60 per cent. The company rebuffed a takeover earlier this year. If the management fail to deliver, there is a strong chance of new bid interest emerging over time. Buy, says the Sunday Telegraph.
Shares in TDG have fallen since the summer on fears that any downturn in consumer confidence will mean fewer products to transport. TDG is less exposed to this than many peers, however, as it focuses on industrial areas such as chemicals that should be less affected by the economic cycle. TDG shares trade at 209p and the dividend yield is nearly seven per cent. Brokers believe the shares are substantially undervalued. Buy, says the Daily Mail.
T Clarke has strengthened its board with the appointment of former Waterman Group managing director Bob Campbell, and another addition is expected soon. Once again, basing investment decisions on the usual metrics can be dangerous in the current environment, but the yield is unquestionably attractive. There are clear cyclical risks with T Clarke, but everything has its price. At these levels, the company is worth a look, writes the Sunday Telegraph.
With defence spending in the UK under pressure, QinetiQ's focus on the North American markets look like the right one. It has acquired 11 businesses in the past three years in the US, four of them in the past year. North American revenues have risen from £165.8m to £256.6m. There are no immediate catalysts to the share price but the investment will pay off in the longer-term. Keep buying, says the Sunday Telegraph.
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