Tip Update: Buy at 106p
- Tip style
- GROWTH
- Risk rating
- MEDIUM
- Timescale
- LONG TERM
- Our previous tip
- We said BUY at 96p on 24 May 2018
- Tip performance to date
- +10%
Huntsworth’s (HNT) shares started the year extremely well, going from around 80p to nearly 140p between January and July. Unfortunately, since mid-year there has been a bit of a reality check and the shares have lost ground since a disappointing performance at the half-year results. However, things are looking up again.
The shares are up 10 per cent after management announced it expects full-year headline profits to "at least" hit market consensus expectations; £29.4m according to broker Peel Hunt. The marketing division has returned to like-for-like revenue growth in the second half after disappointing in the first, and both the medical and immersive divisions have clocked up double-digit revenue growth.
IC View
Huntsworth still has a way to go to recover the ground it has lost since the half year, but recovery in the marketing division is a positive sign. At 106p, the shares trade at 15 times forecast earnings, close to the rating we tipped them at in May (96p, May 24 2018). Buy.
