Last recommendation16 Apr 2009 12:10
Shares in STM Group, the cross boarder financial services provider,
climb 5.8 percent, after the company says it expects results for 2008 to be
inline with expectations, leading Daniel Stewart to repeat its strong 'buy'
rating and 85 pence target price.
Daniel Stewart says the update shows that STM continues to trade 'strongly',
and it considers the company one of its favoured defensive plays in financials
because of the earnings visibility.
The broker, which has a 2009 pretax profit forecast of 2.9 million pounds
for STM, says the company now trades on an unjustifiably low price to earnings
ratio of 5.6 times, so the stock offers great value for investors.