One to watch: Dufry Group
Growth in air traffic continues to climb. This should boost revenue at some of Dufry's airport sites. Brazil, the group's most profitable market, saw passenger numbers soar some 25 per cent in May, according to the country's airport authority.
The ongoing strength of the Swiss franc is proving to be a headwind for Dufry. But plans have been mooted for it to switch to reporting in dollars. Nothing has been decided yet, but it makes sense given three-quarters of the firm's revenues and 60 per cent of its debt is denominated in greenbacks.
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Hide AdA well-run company, with a capable management team in the cockpit, this is a welcome addition to the portfolio.
Dufry Group
SFr101.4 -SFr2.1
Scotsman says BUY
• Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.
BROKER SNAPS
Greene King
489.9p -1.7p
Broker says HOLD
Concern about more volatile trading may dampen short-term share price performance at Belhaven brewery-owner Greene King, although its valuation looks "reasonable" RBS Equities said. The broker added: "We anticipate acquisition activity but prefer to wait and examine the cut of any new acquisition's jib."
Rio Tinto
4,387.5p -53.5p
Broker says REDUCE
Evolution Securities has reiterated its "reduce" recommendation and target price of 400p on Rio Tinto following the mining giant's second-quarter production update. Evo noted: "Full-year guidance has been edged down for bauxite and alumina production and for all coal categories."