As GKN shares paused for breath at around £10m, broker Albert E Sharp jumped in with a strong buy recommendation, backed up with a long-term target price of 1175p. The broker sees good growth in prospect for several years.
Another Sharp buy note helped restore life to storage tanks maker Hadleigh, whose shares crashed recently on its warning about the strong pound. The broker argues that this will be more than offset by the benefits from Hadleigh’s capital spending.
Monday’s heavy stock market fall-out left several major names languishing. Rolls-Royce hovered only a few pence above its year’s low at around 220p. Vickers slipped down to 180p at one time on a profits downgrade from broker Merrill Lynch on currency grounds and fears about the coming model change in the Rolls-Royce cars division.
Shares on the up included Graystone, which, after falling last month on a second-half profit warning recovered some 20p on news of a bid approach. Market newcomer Cammell Laird was off to a good start with a 12.5p premium on the £1 placing price.
The strong pound is now a major worry for many small sector firms, among them Neepsend (market capitalisation £7.75m) the tool maker, metal processor, and plastic injections concern, whose shares fell 18% to 31p after a warning at Monday’s annual shareholders’ meeting.