Friday newspaper share tips: Thomas Cook, Kier Group

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Sharecast News | 23 Sep, 2016

Updated : 14:37

Thomas Cook will likely come through its current troubles the same as it has on other occassions when througout the past 175 years when it has found itself in a pinch, The Daily Telegraph's Questor column said.

The company's finances are being buffeted by fear among travellers following recent terrorist attacks across Europe, political troubles in Turkey - one of its main markets - the strength in the pound after the UK's decision to leave the European Union.

Indeed, some analysts have voiced concerns that a cash call might be necessary at some point.

Offsetting those concerns, the travel operator recently launched a joint-venture with China's Fosun to offer holidays in various geographies, including within China.

Spain and the US are also performing well as travellers seek out "safer" destinations, the tipster said.

Hence, as long as the company reports strong expectations for bookings this winter then the share price is likely to continue its recovery after the thrashing it took in the wake of Brexit.

'Hold', Questor said.

Kier Group is set to continue its promising summer activity on the back of increased infrastructure spending, according to the Tempus column in The Times.

The construction firm had been tipped to fall in the aftermath of the Brexit referendum vote, as many predicted that building would grind to a halt.

However, Kier have reported that there has been a minimal impact on business so far, with the share price gaining 9p to £12.89 on the back of its full-year figures.

Martin Waller from Tempus does not see too many negatives from the company's perspective.

"By almost all measures, Kier is progressing well, getting the benefits from the purchase of Mouchel last year," he said. "The order book stands at £8.7bn, more than half its housing stock is sold forward, while services, now more than half the group after Mouchel, has pushed margins ahead of the 5% mark."

Investors may be tempted to cash in on the group's performance thus far, but Tempus maintains the best is yet to come for Kier.

Strong cash generation and lower-than-expected debt figures cover small areas of weakness caused by the diverse range of the company, and "ambitious targets of double-digit profit growth for the years to 2020 look assured."

Tempus tips BUY on Kier Group.

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