Financial Trading Blog
Stock of the day 27/05/2016 – Johnson Matthey PLC
A dire run of trading across most of 2015 showed no signs of abating as 2016 began, with Johnson Matthey plunging from £26.27 to £22.39 in the first 6-ish weeks of the year. That decline was not only caused by the general malaise that plagued the markets at the start of the year, but by the negative reaction to the company’s third quarter statement.
(Source: IT-Finance.com 27/05/2016)
That update saw Johnson Matthey post a 3% rise total sales from continuing businesses, though it wasn’t all hunky dory. The main thrust of the company’s growth came, as ever, from its emission control technologies division (which manufactures auto catalysts for cars), which saw sales surge 6% to £459 million, outstripping actual global car production. Its petrochemical catalysts-producing process technologies division, however, dropped 11% thanks to the economic slowdown in China, while precious metals product sales slumped by 17% following the plunging platinum price.
Yet from that year-nadir Johnson Matthey began to rise, hitting the £27 mark by the start of April. The company then received another big boost as Credit Suisse pointed to its potential for ‘structural growth opportunity’ in light of the Volkswagen emissions scandal, sending Johnson Matthey to an 8 and a half month high of towards the end of April.
Since then the stock has chugged along near that peak, sitting at a current trading price of £28.76 (IT-Finance.com, 27/05/2016).
Johnson Matthey PLC has a consensus rating of ‘Buy’ with a consensus rating of £31.41.
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