LONDON (ShareCast) - Recruiter Michael Page yesterday gave an upbeat assessment of the company's growth prospects, but when things go wrong in this sector they tend to do so quite quickly.
With no sign of an economic downturn, the shares seem to have a way to go, even if there may be some profit taking at these levels. Hold on says the Daily Telegraph.
Car seat sales are booming at Halfords, but with new child seat legislation only two weeks old before the end of September cut-off for interim figures, they have made only a modest contribution so far.
Progress is also being made in improving gross profit margins after last year's headaches with satnav pricing. Even so, after a decent run it could be time to take some profit says the Telegraph.
The Times adds that Halfords shares are not particularly dear. They trade at a discount to the sector, at 14 times 2007 forecast earnings, and generate a respectable 4% dividend yield. Hold.
Halfords has long been a stalwart for the Independent and it says the shares do not look expensive. Buy.
Telecoms equipment testing firm Spirent may finally be turning the corner. It gave a reassuring trading update yesterday and while keeping an eye open for acquisitions the focus is now very much on organic growth. Buy says the Telegraph.
The Times says Spirent trades at a premium to the sector, on 26 times full-year earnings forecasts. Nevertheless with signs of improvement investors should hold.
Ted Baker, which punches above its weight in terms of profile, demonstrated the strength of its brand yesterday as it topped expectations with an 11.3% lift in half-year profits to £7m. The shares trade at 15 times prospective earnings, a slight discount to the sector. Buy says the Times.
Business Post's problem child is Parcel Services, which accounts for approximately 63% of the group's top line and where revenues declined 3.4% to £94m. Even if the company does manage to wipe out losses at its franchises and continue growth at UK Mail, it is asking a lot to justify the share price. Sell says the Independent.
As prime lenders tighten credit controls, lenders such as S&U will be serving a larger market. Further consolidation in the sector is likely - several smaller players have already merged or closed. Hold says the Independent.
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