LONDON (ShareCast) - Unilever's shares have traditionally traded at something of a discount to other players in the sector - in many respects a hangover from the days when its operational performance did not necessarily match that of its peers.
That discount has now largely been erased and after this week's rise, the stock trades on a little under 17 times 2008 earnings with a yield of around 4.5 per cent. The Sunday Telegraph believes there is little opportunity for a significant re-rating of the shares at these levels and believes the stock is fully valued. Sell.
Based on previous realisations, IP Group’s portfolio should be valued at around £353m, which helps Lehman arrive at a target price of 185p for the stock. Given that the company traded at just 105p this week, the Sunday Telegraph sees value in investing in those oddities born out of university labs that will help shape tomorrow's world. Buy.
Numis raised more money for its clients than in the same period last year and its institutional commissions business is still growing. Clearly, investing in Numis now is a high-risk move as markets are unlikely to pick up in the short term, but with one of the strongest balance sheets in the sector, plucky investors might feel that the stock is worth another look. Buy, says the Sunday Telegraph.
Buying with such a takeover premium embedded in the price may be risky but Lamprell's fundamentals remain strong. Buy, says the Sunday Telegraph.
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