• Mark Watson-Mitchell

Follow-ups on Renewi, REACT, MP Evans, Avingtrans, and Zytronic ….

15th March 2021


Renewi (LON:RWI) – last Thursday’s results update was impressive and certainly helped to push the waste recycling group’s shares quite a bit higher.


Last Friday night they closed at 49.20p, after having hit 54.90p on the results day. That is now more than doubling my profile price early last October.


Brokers Peel Hunt raised its ‘buy’ price objective from 49p to 64p.


(Profile 09.10.20 @ 24p set a Target Price of 35p*)


REACT Group (LON:REAT) – have you noticed the way the shares of this cleaning business have been edging up over the last week or two?


They closed at 2.09p after hitting 2.20p, on Friday.


Could the punters be anticipating a positive Trading Update, covering the interims to the end of March, be expected in the next few weeks?


Hold tight, there is certainly more to go for.


(Profile 28.01.21 @ 1.5p set a Target Price of 2.5p)


M.P. Evans (LON:MPE) – having hit 720p in the middle of January, this sustainable Indonesian palm oil producer has since then seen its shares ease back to 590p.


That could well be a good bargain to be had.


On Tuesday 23 March the group will be declaring its results for the year to end December last – they will be impressive.


I am looking for sales revenues to have leapt nearly 40% to $165m, upon which it will have more than doubled its adjusted pre-tax profits to $22.5m ($10.7m), thereby jacking its earnings up more than three times to 22.5c per share.


Current year estimates are for $200m sales, 31c earnings, 25c of dividend per share.


I see the shares soon shooting way over my previous price objective – with 800p, even 900p being possible.


Remember that the group has been a large buyer of its own shares for cancellation.


(Profile 07.04.20 @ 540p set a Target Price of 700p*)


Avingtrans (LON:AVG) – last Friday the market seemed to be delighted with this specialist energy and medical engineering group’s £35m disposal of its Peter Brotherhood subsidiary, marking the group’s shares up to 340p before profit-taking clipped them back to close up 24p on the day at 325p.


That subsidiary only cost £9.3m in 2017. The net proceeds will be used to pay down some of the group debt, while also giving it some added wellie in following its PIE strategy (pinpoint, invest, exit) in other deals.


Brokers finnCap increased their price objective from 345p to 416p upon the announcement.


Stay firmly with the shares.


(Profile 04.11.20 @ 260p set a Target Price of 325p*)


Zytronic (LON:ZYT) – having peaked at 185p last Thursday the shares of this interactive touch sensor products group closed the week at 180p.


It is possible that we could see them rise still further ahead of the company announcing its interim Trading Update to end March in early April, just a few weeks away.


The shares have performed very well in less than two months, up 47%.


There may well be more to go for but I would not chase them until more is known.


(Profile 27.01.21 @ 122.5p set a Target Price of 155p*)

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