Stocks on the move Real-time Equity News
14:33GMT 05Jan2009
Spirent up as RBS repeats 'buy'
Shares in Spirent, the British telecoms testing company, rise 3.2 percent as RBS repeats its 'buy' rating on valuation grounds, saying order visibility, cost control and US dollar exchange rate benefits should underpin 2008 estimates.
The broker upgrades revenue 2009 forecasts to 280.5 million pounds from 260.5 million pounds, but lowers normalised pretax profit to 46.2 million pounds from 51.3 million pounds, given the challenging outlook, leaving shares trading on just 7.2 times 2009 estimated EV/NOPAT.
Charles Brennan, RBS analyst, says in a note: 'We think these valuations look far too low for a well capitalised business which is well positioned in a global industry.'
Reuters Messaging rm://david.brett.reuters.com@reuters.net
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
