21st November 2013
Stockbrokers are recommending investors sit tight on their Johnson Matthey shares as the firm announces a solid market update writes Philip Scott.
Today the business reported a decent set of interim results which exceeded management expectations. Investors will be pleased to hear the interim dividend was raised by 10% to 17p per share.
The group, a chemicals company that specialises in platinum has seen its shares jump by 33% in the past year and by 11% over the last three months. Platinum, which is widely used in catalytic converters in automobiles to filter pollutants, is the rarest and most expensive of precious metals and its value has held up well in comparison to gold this year.
Graham Spooner, investment research analyst at The Share Centre, says: “Results were boosted by improved demand for its emission control technologies as global production of cars and trucks increases.
“Whilst the company highlighted that the expiry of its deal with Anglo-Platinum will impact second half figures, it also stressed the benefits it could see from tougher European legislation. In a world increasingly concerned with cleaning up its environmental act, it is well placed as the world leader in the production of catalytic converters.”
“The share price has outperformed this year and, with around a third of its business in Europe, in the present climate we would recommend a ‘hold’ on Johnson Matthey.”
Notably, the broker consensus across share data website Digital Look, has the stock pointing to a ‘buy’.