Broker tips: Tyman, AO World

The bank said the H1 numbers were in line with expectations, with management also guiding for FY operating profit to be at the top end of market expectations.

"Macro conditions were clearly challenging through H1, with performance amplified by tough comps and significant industry de-stocking along with negative operating gearing on lower volumes," it said.

"However, we think North American margin delivery was impressive, Lawrence Industries looks an interesting acquisition, H1 2023 should mark the bottom of the cycle across all three divisions, and at 9.5x FY 2024 P/E and 6.8x EBITDA, the stock is cheap."

Shore Capital downgraded its stance on online electricals retailer AO World to ‘sell’ from ‘hold’.

The broker said recent strength in the share price does not reflect a deteriorating trading backdrop evidenced by upstream read-across after what it believes was already a weak first quarter.

"In a scenario where H1 is down circa 10%, H2 would require a robust return to growth against raised energy efficient appliance demand and the World Cup baked into Q3 comps," it said.

ShoreCap said kept its fair value on the shares at 80p and said it’s not downgrading its estimates today but views a 25x price-to-earnings and free cash flow yield of around 4% for FY24 as "demanding". The broker added that it sees better value elsewhere.