As regular readers will be aware I have been a fan of the company all year, having first flagged up the investment case when the share price was 310p ('A share ready to take off', 7 January 2013). The company was a classic recovery play and at the time offered us a solid 6 per cent dividend yield and was rated on a modest 6.5 times earnings estimates net of cash. I subsequently reiterated the advice when the price was 380p ('Get ready for take-off', 7 August 2013) and again at around the current price ahead of the aforementioned results ('Flying high', 17 September 2013). At the time I upgraded my fair value price target to 530p, a level the shares almost achieved having hit a subsequent high of 515p last month.
In the circumstances, it's hardly surprising that some investors decided to bank bumper gains on the holding especially as the recent high coincided with the high point in April 2011 so represented a resistance level on the charts. However, having had a close look at the investment case once again, I feel they may have been premature as I still see scope for decent share price upside from here.