22nd September 2014
It may not be the most recognisable name on the stockmarket but brokers are tipping plastic packaging supplier RPC as a company to watch.
The FTSE 250 listed firm, which counts a large number of big brands among its clients, including Nivea and Dulux, has enjoyed a 17% share price rise over the past year.
However over six months it is off by 12% and brokers may be seeing this buying opportunity as the market consensus on share data hub Digital Look has the stock listed as a ‘strong buy’, with Deutsche being one firm to have just reiterated a its own upbeat recommendation.
The company recently expanded into the rapidly growing Asian market and has a strong, consistent dividend policy which has seen payments to shareholders rise every year for the past 21 years, with a further 12% expected this year.
Ian Forrest, investment research analyst at The Share Centre tips RPC as a ‘buy’ for medium risk investors. He says: “Investors will be interested to hear the recent acquisitions in the UK, Europe and China are all performing well, with integration on track. Although debt levels are relatively high for the sector, since our buy recommendation at the beginning of the month, RPC’s earnings and sales forecasts for the current year have increased.
“The group’s recent move into the fast growing Asian markets, the streamlining of its European operations and strong dividend policy are all attractive for investors looking for a mixture of income and growth. We continue to recommend RPC seeking a balanced investment.”