| CATEGORY: BROKER RECOMMENDATIONS SECTOR: CHEMICALS |
Broker snap: New techologies could boost Carclo |
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Thu 13 Aug 2009
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LONDON (SHARECAST) - The outlook for technical plastic components supplier Carclo is broadly positive, reckons broker Charles Stanley, and the latest set of results represent solid progress.
“While the performance reflects a weaker H2 [second half], Medical & Optical continue to demonstrate strong growth with new programmes secured. Precision Products benefited from new contracts in supercar lighting. The aftermarket has continued to trade well overall, although volumes in communication cables and antennas declined by 30% in H2,” Charles Stanley notes.
The broker likes the look of Carclo’s new technologies, CIT (Conductive Inkjet Technology) and Platform Diagnostics, which have the potential to transform the group, the broker believes. “News flow maybe limited in the short term however developments within its new technologies may well herald further share price progress,” Charles Stanley said.
“We believe that CIT should start generating revenues in the later part of FY2010 if it continues its current pace of development. We believe that there is significant upside in the potential which is not reflected in the current price. We retain our Add recommendation but upgrade our target price to 120p on the progress seen in CIT and Platform Diagnostics,” the broker said.
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