Join our community of smart investors

Get on over-sold Senior's road to recovery

The component manufacturer's share price tanked following its second profit warnings in a year, but we the shares have reached an inflexion point.
January 19, 2017

International high-end components and systems manufacturer Senior (SNR) should be a big beneficiary of the stabalisation in commodity markets and a marked step up in US infrastructure spending, while self-help initiatives should also support margins. But the shares' lowly rating still reflects recent troubles rather than the improving outlook, which leaves plenty of recovery potential on offer.

IC TIP: Buy at 193p
Tip style
Value
Risk rating
Medium
Timescale
Long Term
Bull points
  • Cost management initiatives
  • Step up in US infrastructure spending
  • Stabilisation in crude oil markets
  • Strong aerospace build schedules
Bear points
  • Uncertainty on aerospace contracts
  • Supply chain issues

The group, established in 1933, operates two divisions: aerospace, which manufactures components and systems for clients in aerospace and defence; and Flexonics, which principally supplies the automotive and energy industries.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in