BULL POINTS:
â– Growing aviation division
â– Increase in handling contracts
â– Impressive cash conversion
â– Share price well below sum-of-the-parts value
BEAR POINTS:
â– Over capacity at UK airports
â– Distribution in long-term decline
IC TIP:
Buy
at
429p
At first glance, John Menzies looks like an odd mix of opposites, combining its traditional newspaper and magazines distribution business with airport cargo and ground handling. But it's exactly this combination of a steady, cash-generative operation and a growing aviation business that we deem attractive, especially as the shares look lowly rated.