Questor share tip: niche market good for IMI


SymbolPriceChangeFSTC.OB0.200.00Chart for FIRST CORPIMIF.EX8.270.00Chart for IMI PLCNBXB.SG0.43+0.04Chart for NOVEMBER{“s” : “FSTC.OB,IMIF.EX,NBXB.SG”,”k” : “a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00″,”o” : “”,”j” : “”}

It was a little over a month ago that Questor upgraded the stance on
engineering group IMI (EUREX: IMIF.EXnews) to buy.

IMI (Xetra: 389425.DEnews)

758p

Questor says BUY

The shares have continued to slide since then and they are now trading on a
single-digit earnings multiple. This is far too low for a growth stock.

Last week, the company held a well-received capital markets day. As part of
the presentation it confirmed that trading was “broadly unchanged”.

The rest focused on its use of a number of core fluids technologies across its
businesses. This niche market is good for companies such as IMI as there is
less competition and margins are higher.

The long-term drivers of this business relate to climate change, resource
scarcity, urbanisation and an ageing population.

First (OTC BB: FSTC.OBnews) recommended at 529½p on November (Stuttgart: A0Z24Enews) 10 2009, the shares have been tipped as
high as 853p. Trading on a December 2011 earnings multiple of 9.6, and
yielding 4pc, the shares remain a buy.

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