Brokers' Views: Charles Stanley

Charismatic smaller companies guru Peter Ashworth has upped his price target for Stobart Group to 150p (his previous 98p target having been surpassed) and forecasts pre-tax profits of £28.2 million from the fully listed transport and logistics venture this year.

His thoughts follow strong finals to February 2009 from the logistics group – currently 106.5p – showing 300 per cent top line growth to £431 million and profits motoring 560 per cent higher to £23.1 million, reflecting acquisitions and organic growth. A 3.3p final dividend gives a 6p total for the year.

Ashworth bestows a buy stance on Stobart, which is exercising its option to acquire Carlisle Airport, delivering speedy organic growth and bedding down acquisitions.

Price and profit upgrade for IMD
Colleague Paul Bates is another to have nudged a price target northwards, in this case for AIM-traded TV and radio ads distributor Independent Media Distribution, from 28p to 38.5p. Urging clients to add to their holdings, Bates has upgraded his 2009 operating profit forecast from £500,000 to £800,000 following an upbeat AGM update from IMD, whose recent profit outperformance reflects new business wins, tight cost control and progress in Germany.

Ian Mitchell, meanwhile, has moved his target for banking technology specialist First Derivatives from 230p to 290p, retaining his buy stance following strong full-year numbers. AIM-quoted First Derivatives, currently 257.5p, delivered sales up 39 per cent at £17.5 million for the year to February. Operating profits advanced by 14 per cent to £5.9 million and earnings by 37 per cent to 26.4p.