Hyder Consulting Share Discussion Threads

[mayers] 27/11/2012 15:24

Stability of Israeli/Palestine truce may have some bearing on their ME activities. I am cautious.

[qs9] 26/11/2012 19:13

Solid day. IMO still room for much more of a re-rating, given earnings, cash and as IC point out takeover possibilities as well.

[qs9] 26/11/2012 08:23

And looks like Market thinks so as well, continued rise...

[penpont] 23/11/2012 14:02

Featured again in IC as one of 5 top potential takeover targets:

Hyder Consulting (HYC) makes a strong case as a takeover target. The consultant engineer has spent years successfully building a Middle East business and it is strong relationships with the spending decision-makers in the region that make it a tantalising prospect to any US group struggling with sluggish home growth and the prospect of national budget sequestration - a far cry from the bulging wallets of oil-rich nations in Middle East and budget surplus in fast-growing Asian economies.

Hyder has kept the wolf from the door by tripling the dividend over the last five years, maintaining a strong balance sheet and delivering on overseas growth, but any slip ups or further weakness in sterling could leave it wide open.

North American raiders have a strong track record with UK consultant engineers – most recently Canadian company Genivar shocked the market by taking out WSP at a 65 per cent premium. This was only the latest deal after Halcrow, Scott Wilson and Davis Langdon were taken over by large US groups in the last two years. The one factor that separates Hyder from this group is its strong balance sheet - while rivals suffered from excessive debt built up during the go-go years and paid for it, Hyder has been more prudent and currently holds net cash. In Hyder's latest update, trading was strong in Australia and earlier in the year it won the largest design contract ever awarded in Qatar. But with a market capitalisation of £147m, and shares at 380p trading on a lowly 8.3 times forecast earnings of 45.8p, its valuation still doesn't reflect its fair value, a fact that surely won't go unnoticed for too much longer. John Ficenec

[qs9] 22/11/2012 14:15

thanks for that alter ego....i would tend to agree, but then i am biased as a holder! should be double digit p/e IMO...

[alter ego] 22/11/2012 10:19

The IC thinks HYC are a buy and summarise thus

"There is cash on the balance sheet, good exposure to growing overseas markets, and a healthy order book. At 9 times forward earnings, the shares are valued at a discount to peers and are far too cheap. There is also the growth potential from the dividend that, despite being doubled during the period, it is still easily covered by earnings. Hyder is a bid target as well, so there is always the chance of a payday from a takeover. Buy."

[qs9] 22/11/2012 09:21

I can see £4.79-£5.35 range from brokers on Barclays....decent yield...hope to see further move north over coming weeks as markets digest cracking results...

[qs9] 21/11/2012 19:20

LEts hope this momentum continues during the institutional discussions that they will undoubtedly be having over the next few weeks. Personally given the travails at other support services companies, I am sure funds will like the consistency at the moment from HYC

[qs9] 21/11/2012 13:44

try a p/e of 13 (current consensus I can see is c.46p earnings).....and potential upgrades?

[don carter] 21/11/2012 10:15

Steve, absolutely... Haven't got time now to do a proper calc, but the forward expected eps and a pe of say 15 would surely suggest a 12-month target of nearer 600p.

[stevemarkus] 21/11/2012 09:59

Yes, these should be closer to £5 than £4 IMO. Excellent results all round - good to see the increased dividend, order book, and an impressive lump of cash. Very happy with the results today.

Cheers,
Steve.

[don carter] 21/11/2012 09:26

Good stuff,and even better than expected.

[qs9] 21/11/2012 08:24

Ok divi massively up, profits and margin up, no debt, cash up, order book up and strong, eps up.....let's hope Market continues to like and push them towards a fiver

[qs9] 21/11/2012 07:56

Good results IMO

[qs9] 20/11/2012 11:30

anyone in for tomorrow?

[sleveen] 07/11/2012 18:20

Today's IMS from RPS doesn't make good reading for the forthcoming FY. Which appears to have affected sentiment here.

[northernlass] 12/9/2012 05:48

BROKERS SAY "BUY" HYDER CONSULTING



PEEL HUNT reiterates its BUY recommendation for Hyder Consulting with a target price of 445p.

PANMURE GORDON reiterates its BUY recommendation for Hyder Consulting with a target price of 455p.

NUMIS retains its BUY rating for Hyder Consulting and offers a target price of 479p.

INVESTEC reiterates its BUY recommendation for Hyder Consulting and sets a target price of 500p.

N+1 BREWIN reiterates its BUY recommendation for Hyder Consulting providing a target price of 555p.



New Corporate Video:





P.S.
Here's some links about SCLP, one of the hottest stocks at the moment:

[stevemarkus] 02/8/2012 09:48

A decent statement from the company today. Good to see that the Middle East conditions seem to be freeing up a little, especially in the light of the WS Atkins warning yesterday. Looking good and cheap. Already have quite a lot, but if they get much cheaper I may have to buy a few more.

Cheers,
Steve.

[alter ego] 15/6/2012 11:23

I'm in at a somewhat higher level than you Steve so just breaking even. I bought these a year ago at around this level but am content to hold. It's a well run business with a diverse geographic customer base and excellent prospects as and when the global economy picks up. Takeover potential too, though I'd prefer to own a part of the business longer term.

Yesterday's IC summed up

"At 390p - a modest nine times earnings - and with a growing order book and potential for more wins from the Middle East, the shares are a buy. Buy."

regards Bob

[stevemarkus] 15/6/2012 10:34

I'd be buying more at 300p. I have a decent profit here but am not selling at this level. I've found through experience that it pays to hold through these episodes and if resources permit then add on the dips, and reinvest dividends. It works.

Cheers,
Steve.

[spot1034] 15/6/2012 09:36

HYC is in a sector where there has been quite a bit of M & A activity, and it could well be the next target. The shares aren't expensive and there tends to be quite a wide spread - plus there's a decent dividend, so I'll take a chance on the odd dip in the share price now and again because I'd hate to be out on the morning a bid is announced. It could come at any time.

[sleveen] 14/6/2012 21:21

I sold today for a small loss, it looks to me like this could go lower to perhaps 300p, BRAM and TTG have also took a battering (although different sectors of course)

[25babies] 13/6/2012 08:53

Results just in - performance solid - outlook good.

I bought 4 blocks of shares in consultancies back in 2010/11. Scott Wilson went to URC last year. WSP went last week. Hyder I suspect must be a good contender for a t/o by North American cconsultancy or a defensive play by a larger UK consultancy. I also have shares in RPS.

[don carter] 13/6/2012 08:47

Agreed jonb. Reliable as ever, even in these dark times.

[sleveen] 11/5/2012 17:58

you could be right steve, as someone once said....investing is simple but it isn't easy :-)