LONDON (SHARECAST) - In The Times, the Tempus column kicks off with animal semen producer Genus, which dropped yesterday as investors worried about the price of feedstocks like corn in the agricultural sector. But Genus has been a major success story, providing the gene pool to increase yields for pig and cow farmers across the globe. Its recent moves into China also bodes well. Tempus believes, at 24 times earnings, there is a case to take profits on the stock and sell.
Tempus also notes the impressive fortunes of construction equipment rental firm Ashtead. It moved into the US market in 2006, just before all hell broke loose during the financial crisis. But the US division (SunBelt) is raking in revenues at an extraordinary rate (17% up in the first quarter) because US builders don’t want to buy their own equipment with the market in such dire shape. Analysts are now busy lifting full-year targets and the group has even begun paying an interim dividend. Trading at 14 times earnings Tempus says buy.
In the Telegraph, the Questor column likes veterinary pharma company Dechra, which yesterday announced the ninth successive year of double-digit profit growth. It’s always provided drugs for “companion” animals like cats and dogs but a recent Dutch acquisition now sees it in the agricultural space as well as developing a drug with a US firm to treat “dry eye” in dogs. Trading at around 12 times this year’s earnings, Questors says hold.
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