(Sharecast News) – This year’s share-price weakness of engineering group Keller represents a good buying opportunity, according to The Sunday Times’s Lucy Tobin.
The stock, which has lost a quarter of its value over the past five years, including a 10% fall this year alone, currently trades at 762p.
“The price-to-earnings ratio for 2024 is just 6.5, against 8.1 last year. This seems at odds with macro conditions and Keller’s own performance,” Tobin said.
Keller reported last month in its interim results that it expects full-year profits to be “materially ahead” of 2022 after a record first half.
Tobin, citing comments from broker Liberum, pointed out that Keller holds an 8% market share in its target industry, and The ended the first half with a £1.5bn order book, with more substantial contracts expected in the coming months.
“Keller’s underground work is ready for time in the sun: buy.”
The share price of Seeing Machines should increase “materially” over the next two to three years, according to the Mail on Sunday’s Midas column.
The transport safety software group, whose optical sensing tech is used for things like monitoring basic driver attention to semi and autonomous driving, provides its tool for both commercial and consumer automotive fleets, as well as through its nascent Aviation division.
“The service has been proven to work, it has been snapped up across the world and further progress is expected, amid a global step-up in safety regulations,” the paper said.
Midas pointed out that while Seeing Machines shares have jumped 26% to 5.85p since it recommended them in 2015, there is “plenty more mileage in the tank”.
“According to global statistics, almost three-quarters of road accidents are caused by drowsiness and distraction. Seeing Machines helps to make driving safer, its technology is approved by regulators and carmakers across the world and [chief executive Paul] McGlone has a clear plan for growth,” the paper said.
“Existing investors should hold. New investors could grab a few at current levels.”