- Home |
- Request a Brochure |
- Open An Account |
- Demo Account |
- Prime Markets |
- Careers |
- Contact Us |
Risk Warning
12/08/2011
Shares in Trinity Mirror surge more than 16 percent after the newspaper publishers posts reassuring first-half results, with Numis Securities prompted to upgrade its rating to "buy" from "add", mainly on valuation grounds.
"Trinity Mirror has reported interim results that are in line with our expectations ... (reflecting) the impact of a weak corporate and consumer environment on advertising and circulation," Numis says in a note.
The broker points out that Trinity Mirror's Sunday titles are seeing a significant benefit from the closure of the News of the World, with July circulation revenue growth of +4 percent, although it would caution about against viewing July as an improving trend.
Numis says that this improved performance, and further cost savings means it does not expect to change its full-year 2011 forecasts for Trinity Mirror following this morning's analyst call.
However, the broker does expect to cut its price target for Trinity Mirror to around 50 pence from 60 pence, adjusting for a lower market price/earnings, which leads it to raises its rating for the stock.
Meanwhile, CFD specialist Prime Markets says a speculative buy opportunity has arisen to pick Trinity Mirror shares up at year lows, although it recommends running a tight stop loss in case the group is implicated in the newspaper phone hacking scandal enquiry.
Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.