22nd October 2013
Stockbrokers are tipping the FTSE AIM All-Share listed industrial engineer Avingtrans as a share to snap up writes Philip Scott.
Presently the firm is trading at circa 152p per share and over the past year it has rocketed by no less than 80% – the past six months alone have seen it rise by 30% as the business scoops up a number of lucrative contracts.
The broker consensus across share data hub Digital Look, has the group rated a ‘strong buy’ while The Share Centre is also backing the business.
Graham Spooner, investment research analyst at The Share Centre says: “Avingtrans is a higher risk AIM market investment for a growth portfolio. This smaller company is aiming to establish a niche for itself in the precision engineering supply market and has been a beneficiary of the booming aerospace industry – its latest contract with Rolls Royce is worth £55m.
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“The company highlights its leading position in producing pipes for aircraft engines, along with blade polishing and continues to benefit from the still robust civil aerospace market.”
Although the strength and focus of the group lies in civil aerospace, there are also signs of improvements being made in other areas of the business.
“Over the last year three acquisitions have been made, which has contributed to the increase in revenue and confidence from management for the future, as the order book stands at a record level,” adds Spooner.