Broker view: Why Clarkson shares are a ‘buy’ for contrarian investors

7th March 2016


As Clarkson reports its annual results Graham Spooner, investment research analyst at The Share Centre, explains what they mean for investors…

Shipping services provider Clarkson has lifted its dividend 3% to 62 pence per share, maintaining the progressive dividend policy it has held since 2002.

This comes following another decent performance over the past year despite strong headwinds. Revenue has grown to £301.8m, up 26.9% from £237.9m.

Investors should acknowledge that markets remain challenging, as commodity price movements have impacted trade flows. Looking ahead Clarkson believes uncertain economic conditions will remain a headwind to demand, although a robust balance sheet and pursuit of its growth strategy should keep it well anchored.

The shares now trade on a forward price to earnings ratio of around 15 and a yield of 3.1%.

We continue to consider Clarkson a ‘buy’ for contrarian investors who, in the present climate, are prepared to take a higher level of risk.


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