(INCH) Inchcape

INCHCAPE
JP Morgan rates the car distributor and retailer as “overweight” with a target price of 440p, and says the company’s shares have fallen too far from their high of 425p in July 2011. The broker sees the discount of 18 per cent to the wider retail sector in 2012 as unjustified, given Inchcape’s wide geographic exposure and attractive distribution model, and says that despite negative sentiment on consumer spending the investment case is unchanged.

http://www.cityam.com/latest-news/best-the-brokers/best-the-brokers-9

I am on vacation in HK and having time to think. There is no doubt the financial world is a shambles at the moment. But thinking of global London listed businesses that don't have a large portfolio of financial assets/liabilites on their balance sheet, Inchcape @ GBP2.91 per share does strike me as a lower risk than much else. BUY and wait for results in March.

Good Luck to all for 2012!

Newspaper Briefing,
7:22 am
http://bit.ly/tjdCdR
Broker Views:

Tower Resources: Westhouse Securities maintained a Buy rating on the stock, with a target price of 14.80p

Rockhopper Exploration: Westhouse Securities maintained a Buy rating on the stock, with a target price of 658.00p

Huntsworth: Numis Securities Ltd maintained a Buy rating on the stock, with a target price of 165.00p

Lloyds Banking Group: Evolution Securities upgraded the stock to Buy and increased the target price to 50.00p

Stagecoach Group: RBC Capital Markets upgraded the stock to Outperform and increased the target price to 300.00p

Inchcape: Numis Securities Ltd upgraded the stock to Buy and increased the target price to 390.00p

Questor share tip: Inchcape's global footprint is its strength
http://www.telegraph.co.uk/finance/markets/questor/8860659/Questor-share-tip-Inchcapes-global-footprint-is-its-strength.html


The global car market could hit some speed bumps next year, as expensive purchases are always the first to go when belts are being tightened. However, the outlook for Inchcape, as a globally diverse dealership, looks sound. Questor says buy.

By Garry White7:00AM GMT 01 Nov 2011
Inchcape
326.3p -11.4
Questor says BUY
Inchcape

Last week, the company said that revenue in the third quarter was slightly better than expected, rising 2.2pc year on year to £1.46bn. Like-for-like revenues rose 4.1pc. The dealership said the global recovery in car sales was "uneven" with strong growth momentum for luxury and premium vehicles in Asia Pacific and emerging markets, and a further weakening of consumer confidence in the UK and Europe.
Indeed, yesterday, luxury dealership HR Owen warned that demand conditions in the high-end car market in the UK had deteriorated further. This is why Inchcape's Asian exposure is a key benefit for the group.
Also, the company now expects to end 2011 with a net cash position of about £160m, which is higher than previous guidance. This would represent about 10pc of the group's current market capitalisation, which is good place for the group's balance sheet to be at this time.
The shares are trading on a December 2011 earnings multiple of 9.8, falling to 9.1 next year. The prospective yield is 3pc.

The shares were first tipped at 393½p on March 9 this year and are down 17pc compared with the FTSE 100 down 5pc.
The opportunity in the Asian luxury car market over the medium term cannot be overstated.
They remain a buy for a recovery in the global car market.