Wednesday newspaper share tips: GKN, St.James´s Place
GKN continued to outperform its markets over the latest nine-month period and its acquisition of Fokker looks to have been another clever deal, like the purchase of Volvo Aero in 2012, but it´s time to take profits, The Times´s Tempus said.
Automobiles & Parts
1,028.63
15:44 15/11/24
FTSE 100
8,060.61
15:45 15/11/24
FTSE 350
4,453.56
15:45 15/11/24
FTSE All-Share
4,411.85
15:45 15/11/24
GKN
482.40p
17:00 18/05/18
Life Insurance
5,457.72
15:44 15/11/24
St James's Place
811.50p
15:45 15/11/24
There are also the fruits of its cost-reduction programme to look forward to.
Meanwhile, its driveline unit continues to produce bumper profits, with organic sales having jumped 6%, far in excess of forecasts.
However, its commercial aeropsace programme has run into well-publicised delivery problems for the Airbus A320neo´s engines. Sales of military aircraft were also down again, although that was not unexpected as the F-18 attack craft and Black Hawk helicopter programmes wind up, the tipster said.
Furthermore, growth in the global automotove market is set to slow from 2% in 2016 to 1% in 2017 while Land Systems is still in a rut, trying to sell into weak US agricultural machinery markets.
Trading on 11 times´ earnings the shares are not particularly expensive, Tempus said, yet given their strong run since the summer and market negativity, "some might consider taking profits".
Buy shares in St.James´s Place, Tempus added.
The wealth manager has come through the Brexit storm well. Indeed, over the three months to September net inflows were a little ahead of last year´s mark, at £1.66bn.
In its favour as well, only a quarter of its assets under management are in the UK.
Now that the uncertainty over the sector is lifting the stock looks set to back on the buy list.