Broker snap: Peel Hunt expects to raise numbers at Rotork

2nd Aug 2011 10:36

Peel Hunt expects to make upgrades to its full-year forecasts for Rotork, following the engineering group's strong interim results."Strong order intake, record order book and ongoing activity levels have increased management's FY [full-year] revenue expectations," notes analyst Thomas Rands.As such, the broker expects its pre-tax profit estimates for 2011 to be raised by 5-7% towards £117m, compared with consensus forecasts of £110m."Whilst Rotork never looks cheap in valuation terms the recent sell-off is a buying opportunity [...] A small premium to the sector by historic standards and offering good value for one of the highest quality names in the sector," Rands said.A buy rating and target price of 1,825p are kept.Shares were 10.20% higher at 1,728p at 10:10.BC