Senior gets a lift from growing demand for flights: After years of being ignored by the public, the engineering sector is finally reappearing on investors’ radar as they realise several important factors. One of these companies producing real things is Senior, which derives almost two thirds of its revenues from producing engine, structural and ducting components for the aerospace sector, and the remainder from its Flexonics division, which makes flexible parts used in the land vehicles and industry. Senior describes itself as focused on “tough to make, highly engineered” products that give it strong positions in niche markets. On Monday the FTSE 250 business posted annual sales of £820.8 million, up 6%, and pretax profits 4% lower at £80.6 million. These figures were at actual exchange rates – Senior didn’t need to bleat about how 80% of its profits are generated outside the U.K. meaning that sterling’s strength has a big impact on its results. As constant currency rates, revenue was 11% higher and profit rose 2%. The main threats to Senior’s aviation unit are the low oil price, which could slow orders for new jets if it persists, its weak sales in Brazil and Europe and the challenges in industrialising new programmes as the aviation market continues to develop. Senior plans a 10% increase to the dividend, which is 2.6 times covered by free cash flow, down from last year’s 3.2 times, with the shares yielding 1.7%. Questor last ran a slide rule over Senior in October when the shares were at 280½p and rated the company as a hold. After a strong run into the results, Questor sees the shares as a little overvalued to recommend upgrading to a buy, but believes that should the price ease a little, they are worth a punt. Senior at £337.6p. Questor Says “Hold”.
SENIOR NEW HIGH......
SNR Senior hits a new 10 year high. Forward P/E of 16.3 to 2016, still further to go. https://pbs.twimg.com/media/B-xt3kGXAAAZ2iv.jpg
24 Feb '15
SNR Broker Update......
<b>Senior plc Stock Rating Reaffirmed by Numis Securities Ltd (SNR)</b> Posted by mitch on Feb 23rd, 2015 Senior plc (LON:SNR)‘s stock had its “buy” rating reissued by equities researchers at Numis Securities Ltd in a research report issued on Friday. They currently have a GBX 340 ($5.23) target price on the stock. Numis Securities Ltd’s price target indicates a potential downside of 0.50% from the stock’s previous close. Senior plc (LON:SNR) opened at 341.90 on Friday. Senior plc has a one year low of GBX 248.90 and a one year high of GBX 339.729. The stock’s 50-day moving average is GBX 314.8 and its 200-day moving average is GBX 286.5. The company’s market cap is £1.421 billion. A number of other firms have also recently commented on SNR. Analysts at N+1 Singer downgraded shares of Senior plc to a “hold” rating and set a GBX 312 ($4.80) price target on the stock in a research note on Tuesday, February 10th. Analysts at Liberum Capital reiterated a “buy” rating and set a GBX 325 ($5.00) price target on shares of Senior plc in a research note on Wednesday, February 4th. Analysts at Panmure Gordon initiated coverage on shares of Senior plc in a research note on Tuesday, February 3rd. They set a “buy” rating and a GBX 417 ($6.41) price target on the stock. Finally, analysts at JPMorgan Chase & Co. reiterated an “overweight” rating on shares of Senior plc in a research note on Friday, January 16th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and ten have issued a buy rating to the company’s stock. Senior plc presently has an average rating of “Buy” and a consensus target price of GBX 337.64 ($5.19). Senior Plc is a United-Kingdom based manufacturing company proves engineered products for demanding operating environments. The Company operates in two divisions: Aerospace and Flextronics. Aerospace serves both the commercial aerospace and defense markets with a range of products for structures, fluid conveyance, and gas turbine engines.
17 Feb '15
What a great looking share the last few months... hope it continues !
11 Feb '15
Think this could be heading for 3.50 soon!
7 Jan '15
FT on Senior new CEO
Senior moment: To lose two parents may look like carelessness, but losing two important Executives need not be a sign of corporate inattention. David Squires’ impending move from Cobham to run rival industrial group Senior comes barely a year after Cobham knew it was losing Richard Tyson to TT Electronics. But on each occasion ChiefExecutive Bob Murphy made a point of issuing a gracious farewell. Indeed, there is some reciprocity between Cobham and Senior: Simon Nicholls, Cobham’s finance Director, joined the board in May last year, having fulfilled the same role at the rival group. Also critical will be Mr Squires’ experience running restructuring programmes: these are on course to generate £85 million in savings for Cobham by 2019. In theory, the smaller businesses that make up Senior should be susceptible to rationalisation. In practice, agreements and clearances related to individual companies within the group may make this more difficult than a management consultancy case study would suggest. Harder still will be finding new streams of revenue to make up for the shrinking military budgets that make this rationalisation necessary.
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