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News & Tips: Ultra Electronics, Dechra, AstraZeneca & more

Markets dip again
April 22, 2016

Equities are ending the week on a downbeat note with another sell off. Click here to see what The Trader Nicole Elliott makes of the markets.

IC TIP UPDATES:

Shares in Daimler (DE: DAI) fell 6 per cent after questions over its emissions testing process overshadowed the German car giant’s upbeat outlook for car sales. First quarter operating profit slid 9 per cent, although this was ahead of forecasts and is expected to improve throughout the year as new models come to market. Sales rose 2 per cent, but investment in the new E-class saw margins on Mercedes Benz cars tighten by 2.1 percentage points to 7.1 per cent. Buy.

Ultra Electronics (ULE) sonar systems unit has won a £9.5m contract extension with the UK’s Royal Navy. The deal will see the defence contractor supply sonobuoys for the Merlin Maritime Patrol Helicopter, ensuring that the Royal Navy maintains surveillance capabilities against hostile submarines. Buy.

Veterinary pharmaceutical group Dechra (DPH) has today announced the completion of its takeover of US companion animal company Putney Inc. The $200m deal has been funded partly by fund-raise in March and partly by extended debt facilities. The share price is flat today and we retain our buy recommendation.

Liverpool’s World Heritage site, Albert Dock, is about to be given an injection of modernity it seems as Revolution Bars Group (RBG) announces one of its three new sites there. Management said the bar in the northern city and one it is opening in Reading would be be Revolución de Cuba bars, of which it has eight at present. Its new Stafford location will be under its main Revolution brand, which number 52 now. Buy.

KEY STORIES:

The relationship between Mr Kipling cake maker Premier Foods (PFD) and Japanese instant noodle maker Nissin Foods is well and truly baked in now. The UK company, which also boasts brand including Bisto gravy and Ambrosia custard, said it was formally in a “relationship agreement” with Nissin, which will see the pair leveraging each others’ distribution networks. Nissin will also have the right to appoint a non-executive director to the board providing it holds at least a 15 per cent stake in the Premier. It already does so expect an appointment soon. Buy.

AstraZeneca (AZN) has announced its plans to partner with California based genomics company Human Longevity, and two non-profit research centres; the Wellcome Trust Sanger Institute in Cambridge and Finland’s Institute of Molecular Medicine. This news sparks the start of Astra’s venture into the world of genomics which the group are expected to spend “hundreds of millions of dollars” on over the next few years.