Broker snap: Stobart takes the high road

21st Aug 2009 13:09

Charles Stanley is encouraging its clients to get on the Stobart bandwagon after the trucking firm's trading update on Friday morning. 'In a period of consolidation, the group continues to make significant progress. The core business continues to secure new contracts. The group has made progress in its port and airport developments and the focus remains on new business (like the new rail venture) and the integration of the prior acquisitions,' said Charles Stanley analyst Peter Ashworth.The broker is forecasting a profit before tax of £28.2m for the current fiscal year, which runs to the end of February. Second half performance should be solid on the back of recent contract wins, additional new business and action taken to reduce costs.Charles Stanley rates the shares a 'buy' and has a price target of 150p.