Investec welcomes "reassuring" update from Domino Printing

Investec has remained positive on shares of Domino Printing Services after inkjet and laser printing company delivered a "reassuring" trading update on Friday.

Reported sales were up 5% in the first 10 months of its financial year, with constant-currency sales growth up 9%.

This, according to Investec analyst Michael Blogg, "represents a faster rate than most Industrial companies are currently reporting".

"For a company that has had some setbacks in the last year or two – including having to write down its major investment in TEN Media and encountering some rough competition in China – the progress reported today is reassuring."

While Domino warned that it remains cautious about prospects for next year (ending October 2015), Blogg played down concerns.

"Even with the prospect of price competition and additional investment flattening earnings next year, this remains an attractive story to us," he said.

He said that while the company has had its "occasional blips", its long-term track record for generating growth means that these can be excused.

Investec kept an 'add' rating and 650p target price for the stock, which had jumped 6% to 588p by 09:43.