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ANALYST VIEWS: WHAT DO CHAUCER’S FIRST QUARTER RESULTS MEAN FOR THE STOCK?

MARK WILLIAMSON | KBC PEEL HUNT
“The stock now languishes on an 18 per cent discount to actual tangible assets. If the market is not prepared to value the group appropriately it may attract predatory interest, particularly as the uncertainties created by the investment portfolio are now well behind the group.”

EAMONN FLANAGAN | SHORE CAPITAL
“It was a bit of a mixed bag. UK rate increases at three per cent were good. They’re quite bullish about the rating environment, probably more so than everybody else out there. The stock fell a bit because there have been suspicions of a bid in the background and those have unravelled a bit.”

NICK JOHNSON | NUMIS SECURITIES
“Chaucer’s shares currently trade at a 13 per cent discount to December’s net tangible assets. We believe Chaucer’s share performance may remain lacklustre until earnings certainty emerges towards the end of the year. We see the current price as good value if earnings forecasts are achieved.”