(WebFG News) - FTSE 250 manufacturer Fenner, which is due to be bought by France's Michelin in a £1.2bn deal, posted a 96% jump in half-year underlying pre-tax profit on Wednesday as all of its businesses continued to perform well.
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French tyre manufacturer Michelin has agreed to buy UK engineering company Fenner in a deal worth around £1.3bn.
Fenner said it had bought the assets and business of US-based National Bearings Company, a small specialist manufacturer of custom engineered polymer and metal bearings, for an undisclosed sum.
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Shares in Low & Bonar tumbled on Wednesday as the performance materials specialist announced the resignation of chief executive Brett Simpson with immediate effect and said adjusted pre-tax profit for the year would be hit by a weaker-than-expected final quarter in the coated technical textile business.
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Plastics manufacturer Fenner was pulled out of the red and bumped up its dividend 40% thanks to much strengthened order intake, which should mean the new year is better than the City was expecting.
Fenner shares were a 'buy' for the Sunday Times' Inside the City column. The plastics engineering group specialises in the manufacture of conveyor belts, industrial seals, medical device components and other bespoke polymers in its Precision division. Having sunk to a six-year low early last year, as its traditional coal markets waned amid the green energy revolution, the stocks has rebounded in style along with crude oil prices.
Reinforced polymer technology group, Fenner announced on Tuesday that it had acquired small Pennsylvania-based specialist precision polymer firm Revolution Drives on 25 August.
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Fenner swung to a profit in the half year ended 28 February as revenue rose and the group grew its market share.
New Fenner director Michael Ducey has joined with his new board colleagues in putting his money behind the plastics group, with a £84,000 purchase of shares.
Engineering group Fenner said on Friday that it expects results for the current financial year to be "comfortably above" previous expectations amid stronger order intake and improved customer enquiries.
Fenner, a British manufacturer of industrial belting and other polymer based products, performed better than expected in the face of challenging market conditions.
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Industrial polymer-based manufacturer Fenner said on Thursday that its full-year results are likely to be at the top end of the current range of market expectations and in line with guidance given at the annual general meeting in January.