GKN Share Discussion Threads

[bolador] 27/2/2016 11:50

The weakness of sterling must be a strong tailwind for this company !
Right now the equity market seems to have forgotten about forex and the effect on the bottom line.

[cisk] 25/2/2016 10:34

Must be a nice position to be in - more work than you can handle!

More detail on the Zodiac news Alpha referred to:


I think it's impossible to say how far in advance you need to be in - can only comment personally that I like to gradually accumulate on weakness, picked up a few more yesterday sub 260, but fully expect the shares could go lower than that.

However I like the company, it's a leader (or no 2 or 3) in most of its markets and undoubtedly will benefit from when programmes like the A320neo & 737max come on stream. Just looking at the variety and number of components GKN supplies for the 737max for example (see is quite revealing.

Yes the market does not like companies like GKN or Senior (FWIW it would be a good fit for GKN to buy Senior, there doesn't seem to be much overlap but haven't looked in-depth), but it's a well run company in growing markets.

I remember back in 2012 when DS Smith (SMDS) was around 140p - now it's around £4, back then the market was concerned that a large deal they did brought too much debt and would be too much to integrate, the picture is very different now.

[alphahunter] 25/2/2016 09:47

FWIW

Many aerospace subcontractors have seen their valuation rerated downwards this past year, as 2016 is a year of transition between old (production ramp down) and new (production ramp up) airline manufacturer modeles.
A few have delivery issues - this morning Zodiac for the third time - which may affect everybody else as aircraft deliveries are pushed out (cf Airbus)

GKN, like may others, are a play on 2017. How much in advance does one need to be in? I am long in this space (Airbus, B/E Aerospace) but I am not yet convinced in the Fokker acquisition.

GLA

[alan@bj] 24/2/2016 08:26

"Buy" advice by today's Tempus column in The Times. It says the drop in the share price "provides an opportunity to get on board a high-quality, blue-chip company......core businesses are doing well, outperforming their wider markets....falling military demand will be a problem this year, but that should merely be a pause for breath."

[cisk] 23/2/2016 23:42

I think it's a bargain and misplaced by the marked. Today's results contained little surprise and indeed were better than I was expecting, given the price weakness. GKN and SNR are priced very cheaply IMHO and I'm happy to be accumulating at these levels.

[alan@bj] 23/2/2016 21:52

It's not just me then. I thought the results were pretty solid and the outlook for 2016 positive.

[gopher] 23/2/2016 19:36

The words in the results statement are positive enough the PE is lowish, divi well covered. The stock has been de-rated over the last 12 months but fell again today. I am struggling a little to understand.

[alan@bj] 08/2/2016 09:53

2015 full year results presentation 23rd February 2016.

[market sniper3] 05/1/2016 10:55

GKN PLC GKN Haitong Securities Buy 291.65 294.60 365.00 365.00 Reiterates

SP Target 365p

[alan@bj] 12/11/2015 09:39

And today's bad news affecting GKN's share price comes from Rolls Royce.....

[matt123d] 10/11/2015 22:37

*BOEING CANCELS CONTRACT WITH GKN FOR 737 MAX PART: WSJ

[market sniper1] 26/10/2015 10:01

GKN GKN PLC

GKN plc (LON:GKN)‘s stock had its “buy” rating restated by investment analysts at Beaufort Securities in a research note issued to investors on Friday, MarketBeat.com reports.

In other news, insider Sclater,Jos bought 7,792 shares of the business’s stock in a transaction dated Friday, September 25th. The shares were acquired at an average price of GBX 255 ($3.94) per share, for a total transaction of £19,869.60 ($30,672.43). Also, insider Reynolds Smith,Andrew sold 168,353 shares of GKN plc stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of GBX 284 ($4.38), for a total value of £478,122.52 ($738,071.19).

A number of other analysts also recently issued reports on GKN. Credit Suisse reiterated an “outperform221; rating and issued a GBX 410 ($6.33) target price on shares of GKN plc in a report on Wednesday, July 1st. Investec restated a “buy” rating and set a GBX 410 ($6.33) price objective on shares of GKN plc in a report on Thursday, July 2nd. JPMorgan Chase & Co. reiterated an “overweight221; rating and issued a GBX 426 ($6.58) target price on shares of GKN plc in a report on Tuesday, July 7th. RBC Capital reissued a “sector perform” rating and issued a GBX 330 ($5.09) price target on shares of GKN plc in a research report on Friday, July 10th. Finally, Numis Securities Ltd reaffirmed an “add” rating and set a GBX 400 ($6.17) target price on shares of GKN plc in a research report on Monday, July 20th. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and fourteen have issued a buy rating to the company. GKN plc has an average rating of “Buy” and a consensus target price of GBX 368.94 ($5.70).



Shares of GKN plc (LON:GKN) traded up 2.09% during trading on Friday, hitting GBX 293.50. 7,402,048 shares of the company’s stock were exchanged. The firm has a 50-day moving average price of GBX 275.95 and a 200-day moving average price of GBX 321.58. GKN plc has a one year low of GBX 248.56 and a one year high of GBX 389.00. The stock’s market cap is GBX 4.83 billion.

GKN plc is a worldwide engineering business, participated in the design, fabrication and service of systems and components for original equipment manufacturers. The Company operates in four segments: Aerospace, Driveline, Powder Metallurgy and Land Systems. Its Aerospace section is a supplier of engine products and aerostructures and systems to aerospace sector. Its Driveline is a supplier of alternatives and automotive driveline systems to the vehicle makers. Its Powder Metallurgy is a manufacturer of sintered components and a producer of metal powder. Its Land Systems is a provider of power management services and products for industrial, building, mining and agricultural equipment. Its other companies consist of GKN Zhongyuan Cylinder Lining Co Ltd, which manufactures engine liners for the truck market in America, Europe and China; GKN EVO eDrive Systems Ltd, which is a developer of axial flux motors, and GKN Hybrid Power Limited, which offers fuel-saving options.

[market sniper1] 26/10/2015 10:00

GKN plc Receives “Buy” Rating from Beaufort Securities (GKN)
October 25th, 2015 ......hxxp://www.americanbankingnews.com/2015/10/25/gkn-plc-receives-buy-rating-from-beaufort-securities-gkn/

[cisk] 23/10/2015 11:43

I agree. What do folks think of Senior? also been hammered, somewhat harshly I think.

[market sniper1] 23/10/2015 11:23

No probs alan. thanks.

[alan@bj] 23/10/2015 09:27

Thanks for posting that ms1

[market sniper1] 23/10/2015 08:53

GKN..........



Beafort Securities

GKN (LON:GKN, 287.50p) – Buy

Yesterday, GKN released a trading update for the nine months ended 30th September 2015. The company’s sales during the period stood at £5.7bn (2014: £5.6bn). GKN’s Aerospace division sales improved to £1.8bn (2014: £1.6bn), while the Driveline segment reported sales of £2.7bn (2014: £2.6bn). GKN Powder Metallurgy sales stood at £694m (2014: £696m). GKN Land Systems sales in the period dropped to £535m (2014: £602m).

Our view: GKN sustained its growth momentum recording a 2% organic growth in the first nine months of 2015, offsetting the difficult market conditions. The company’s major segments Aerospace and Driveline performed in line with the expectations and reported improvement in sales. The Aerospace division continued on the shift from old programmes to newer platforms, providing GKN a solid base for future growth opportunities. Additionally, GKN remains on track to complete the acquisition of Fokker Technologies, which would further enhance its technology, manufacturing footprint and bring extra content on key growth programmes. Furthermore, the company launched a number of new brands in the third quarter to counter the competition from the local brands. With all the major divisions exhibiting good performances, the company remains well positioned to witness decent growth in the global markets. Therefore, we retain a Buy rating on the stock.

[bigboots] 22/10/2015 07:55

Quite flat really

[broadwood] 22/10/2015 07:37

Statement looks quite reassuring.

[mj19] 19/10/2015 12:42

Anyone buying

[alan@bj] 16/10/2015 16:09

Trading statement due next Thursday (22nd October)

[alan@bj] 16/10/2015 16:07

Engineer GKN is still a high-quality business with strong positions in the global automotive and aerospace industries, Berenberg said, but external concerns have depressed its share price, leaving it looking like a good value play. The first concern which has hit GKN is potential fallout from the emissions scandal involving German carmaker Volkswagen. VW is the biggest customer for GKN's Driveline business, which makes driveline equipment and systems for vehicles, and this exposure to the scandal has "spooked investors", Berenberg said. But the Driveline unit has a globally diverse customer base, supplying products which are agnostic to original equipment manufacturers, programmes and petrol or diesel engines, Berenberg said, adding that the risk of VW halting production is "not a scenario we anticipate". The second concern for the auto business is the slowdown in China, from where GKN derives about 8% of group sales. While the economic sluggishness is real, this has not resulted in a sharp downturn in activity, Berenberg said, and latest data out of China suggests auto markets are stabilising and destocking is slowing. GKN's robust exposure to domestic manufacturers, strong demand for SUVs and a healthy pipeline of vehicle launches should ensure it grows its Chinese market share. Turning to aerospace, the ramp-down of the Airbus A330 programme, to which GKN supplies wing box and cover components, will prove a challenge for the company through the first half of 2016, but should be offset by better-than-expected trends in the military segment, Berenberg said. The Airbus A350 programme will turn profitable by the end of 2015 and this, along with growth in most other commercial programmes and the ramp-up of the F-35 fighter programme by Lockheed Martin, should generate cash and profits for GKN by 2017. In addition, GKN's acquisition of Fokker, a Dutch maker of aerostructures, electrical wiring systems, landing gear and associated services, earlier this year will add further exposure to both the A350 and F-35 platforms. With GKN trading at a 2016 earnings multiple of 10 times and a 2017 multiple of 8.7 times, the company looks to be an "attractive value play", Berenberg said. Berenberg cut its target price to 370 pence from 415p, due to cuts made to its earnings per share forecasts through to 2017, but kept its Buy rating intact.

[tudes100] 08/10/2015 11:42

Since when does a CEO have time to be a NED on another big business ?
Perhaps an opportunity to get a little closer to the customer but seems a little odd to me