Ricardo Share Discussion Threads

[paleje] 16/7/2013 15:12

As of 10 June, IC and others were pretty bullish on RCDO, I'd say today's update supports their views and September results could finally see us starting to come good. If Europe's motor industry improves, and some think it's at rock bottom, there should be plenty of upside imo.

From IC 10 June 2013:-

Investec Securities says...

Buy. Ricardo is benefiting from a recovery in automotive markets outside Continental Europe and an increasingly well-diversified revenue base. The order book is solid, Ricardo-AEA has performed as expected and management impressed on cash generation again. We forecast full-year underlying pre-tax profit of £20.9m and underlying EPS of 33p, but believe the pre-close update could drive upgrades should current trading conditions prevail through the final weeks of the financial year. Trading at what we view as an unwarranted discount to the broader consulting sub-sector, and with the business trading well, we keep our rating and multiples-derived target price of 465p.



Nomura says...

Buy. Revenue growth in the existing operations is marginally lower than our forecasts, but the resumption of orders from major car manufacturers is a new and positive development for the next financial year. The cash performance is also encouraging ahead of our expectations for £5.3m of net debt at the year-end, and is only partly due to the £3.7m sale and leaseback of the German offices. With the shares trading on a June 2013 PE ratio of around 12, we continue to see Ricardo as cheap and reiterate our buy recommendation and 550p price target.



IC VIEW:
Ricardo has spent a number of years diversifying the business, most recently with the acquisition of AEA, which should generate cross-selling opportunities and more cost savings. Talk of a strong order pipeline and an increasingly confident tone from management is encouraging, too, and implies that the shares, trading on a little over 12 times forward earnings and with upgrades possible, are undervalued. Buy at 410p.

[wjccghcc] 16/7/2013 10:06

I've been adding quite a few whenever they dip below 385p. The AEA acquisition was a steal and they have good cash generation and a good dividend. Never going to set the world alight but a well run business in a growing area.

[interceptor2] 16/7/2013 09:15

Surprised there are no comments on todays trading update, which seemed rather upbeat to me. Always good to have the words exceeding expectation, and it feels like business is gathering momentum now.

I have always like this company, but today's update has given me my first opportunity to purchase stock here.

Now I must complete my research.

ic2...

[raysor] 05/11/2012 10:07

Redmayne Bentley says Ricardo is a buy at 364p. In their latest edition of Share Spotlight they cite Ricardo's growing presence in China and across the globe in the passenger car market.

[nellie1973] 04/11/2011 20:10

broker upgrade

[attrader] 27/7/2011 22:24

cool , bought in a week ago . hopefully it would break out from 400 soon ..

[wjccghcc] 26/7/2011 22:04

Have a few. Agree with supernumerary.

[supernumerary] 26/7/2011 13:30

I watch, but not in. Great company and I'm surprised there isn't more interest. Excellent recent TU.

[attrader] 25/7/2011 18:53

anyone still in this ?

[campbed] 28/9/2010 07:57

Reasonable results, a little ahead of forecasts especially EPS at 20% because of extra R&D prior year tax credits.

[onehandeconomist] 25/9/2010 18:43

Or may be not!

[onehandeconomist] 01/9/2010 11:47

Ah, so time to do a trading sell then?

[gozo] 05/1/2010 16:09

interesting cutting taken from the last final results statement -

The Ricardo R&D portfolio has continued to grow in the last year, and included
below are some of the highlights.


* We have recently completed the Roads2HyCom European project. Ricardo led this
29-member consortium of organisations from a wide range of sectors including
transport. This project was created to support planning of EU investment in
future fuel cell and hydrogen applications, examining the technical and
socio-economic issues associated with future market opportunities and growth.
Ricardo has now defined a clear picture of when and where fuel cell and hydrogen
markets may grow and what role Ricardo can play in the commercial exploitation
of these markets.
* Our innovative switching two-stroke to four-stroke boosted gasoline engine
concept has now moved into its third phase. Following on from an initial concept
study and a second phase which delivered a proof of concept engine in a rig
test, the latest phase seeks to demonstrate the fuel efficiency and performance
potential of the engine in a Jaguar XF vehicle. This project is part funded by
the UK Technology Strategy Board, with collaboration from Jaguar Land Rover,
Denso UK and the University of Brighton.
* Interest in ethanol as an alternative fuel in the US continues to grow and
Ricardo has been very active in designing and developing a high-performance
boosted spark ignition engine that exploits the enhanced fuel properties of
ethanol compared with gasoline. Thanks to direct injection, a high compression
ratio and the use of exhaust gas recirculation under all conditions, the engine
has delivered outstanding performance and fuel economy, with significant
benefits compared to conventional gasoline engines converted to operate with
flex-fuel capabilities.
* We have made significant progress in developing a practical mechanical kinetic
energy recovery system (KERS) for road cars. This builds on some of the progress
made with high-speed flywheels initially developed for Formula One KERS. Ricardo
has created some innovative solutions to provide a cost-effective route to
implement this technology in road vehicles, avoiding the need for high-speed
mechanical seals and creating new low friction and long life high-speed bearing
systems.
* Ricardo has also been very active in supporting the growth of electrification in
transport, with a wide range of studies and investments. One of these has been
the ReHEV (Range-extended Hybrid Electric Vehicle) project part-funded by the UK
Technology Strategy Board and led by Jaguar Land Rover. Together with
electricity utility E.ON, Ricardo has carried out a study to explore the impact
of electric and plug-in hybrid vehicles on electricity demand in the UK. Further
studies have defined the potential for a more intelligent charging
infrastructure and the use of grid-connected electric vehicles to operate as a
mass energy storage facility

[gozo] 04/1/2010 11:31

onehand - You are not alone. Made my first purchase this morning after funds cleared in the isa.

i have a good feeling about this company.

[onehandeconomist] 03/1/2010 14:49

No posts in two years. What a lonely stock. However, little debt, well covered dividend, loads of bad news priced in and yet this company has tasty exposure to both government business and eco-driven business. Sure it's in an unfashionable sector but doesn't that make all the more attractive? Looks a nice long-term put away. What am I mising? Hello?... Hello?

[jscowi] 08/11/2007 12:22

Whats up here? A bid coming maybe??

edit: ah the naker trader effect

[wooly62] 12/4/2007 12:36

Sandbank - do you have a shrewd hunchas to the trend from April to November this year yet? Or will you be better placed to have a hunch in October??

[wooly62] 12/3/2007 10:42

Sandbank - I've continued to hold at the same level. Interims look ok and share price has done fairly well. I plan to stay put for the medium term as I remain of the view that this is a good business and that the long term trend is upward.

[sandbank] 20/2/2007 09:10

WOOLY: I see you posted this query in September 06.

If I were you, back last September, I'd be selling my house, putting my wife on the streets, offering my children to the highest bidder and putting all the cash I have into Ricardo.

I have a shrewd hunch that from November to Febtuary 07 this will rise (IMHO).

[wooly62] 04/9/2006 11:48

Anyone have any thoughts on where this is going and why? It seems HSBC have bought in whilst Aviva have been bailing out (if I read the July announcements correctly).

[dolphinspirit] 31/8/2006 11:13

Let's hope the trend continues.

[mustbefunny] 30/8/2006 22:02

Bearbull article in Investor's Chronicle 2 weeks ago

[dolphinspirit] 24/8/2006 11:44

Does anyone know what has sparked the sudden rise in price?

D