Shares of stock market high stepper Bodycote International the metal technology and safety products group, has been on a see-saw this past week. First falling sharply on profit taking then recovering most of the lost ground as brokers alerted investors to a buying opportunity.
House broker Henry Cooke believes they could reach £10 and recommends them as a long-term buy.
Its confidence is based on improved prospects in the aerospace and industrial markets, and profit potential of its sales base which has increased by earnings-enhancing acquisitions.
Other bull points include a potential acquisitions `war chest’ of around £45m, and a policy of consolidating the heat treatment market by snapping up poor performers which improve under the Bodycote banner.
Cooke estimates 1996 profits of £26.6m (£18.4m) and earnings of 27.2p (21.7p).