Analyst Views | Why did the market react so positively to Johnson Matthey's results?

 
Suzie Neuwirth
DAVID MADDEN IG GROUP

“The decline in profits wasn’t as bad as expected and the current slump in metal prices had already been factored in by the market. New European legislation should have a positive effect on sales, although the Eurozone recession raises the question of whether there will be much demand for new vehicles.

Decreasing metal prices look set to continue to be a major trend.

CHARLES PICK NUMIS SECURITIES
“The rate of decline in the fourth quarter was far less than in the third and second quarters. Furthermore, the company had previously predicted that the second half would be the same as the first half, but the second half is already ahead. Growth is expected to accelerate into 2014-15 and beyond, which is particularly bullish bearing in mind the Anglo

ADAM COLLINS LIBERUM CAPITAL

“The results are slightly ahead of expectations and analysts will probably amend their estimates for next year. The weaker pound against the dollar has also provided a modest upgrade. The company remains very confident about the impact of new regulations in Europe and although this is not a new story, it is coming closer and people are paying more attention to it.