Companies: AWG    CPU    ETM    IPR    NWG    SVR   

Analysts at Charles Stanley have been training their guns on some major targets of late, with the likes of water suppliers AWG and Northumbrian Water joining electricity giant International Power in receiving either a sell or reduce recommendation from the broker in recent weeks.

Companies operating at the growth end of the market have enjoyed more positive treatment from the Charles Stanley team, however, especially those with a technological bent.

Among those benefiting most has been scheduling software developer ServicePower Technologies. Analyst Robert Corden believes the business will break into profits this year and, based on these expectations, reckons the shares have the potential to double in value over the next two years. This is enough to earn ServicePower a strong buy recommendation, although Corden does caution that the shares are being recommended to ‘clients with aggressive growth objectives, who understand the risks of investing in small companies trading at a loss’.

AIM-listed IT services group ComputerLand (UK) is another currently held in the highest esteem by the Charles Stanley team, having surpassed previous expectations to report a £2.2 million full year profit. Currently trading on a prospective p/e of 10.7 and predicted to yield a dividend in the region of 3.6 per cent for 2006/07, ComputerLand is tipped as a strong buy as well.

However, there was disappointing news for Italian fixed-line telecoms operator Elitel Telecom, as its latest results saw profits fall some way below market expectations. Analyst Ian Mitchell downgraded his recommendation from a buy to a hold in the wake of the news, but asserts that ‘while we are cautious for now we believe Elitel’s management team has the potential to overcome these short-term challenges.’