Numis believes the shares are significantly undervalued and raised its target price from 411p to 423p on the back of a positive trading update. Management said Menzies Aviation had seen a slight improvement in fourth quarter trading, while Menzies Distribution saw the rate of decline for magazine sales slow.

Charles Kernot has issued a “buy” rating after the appointment of experienced former Anglo-American man Gareth?Williams as director of mining. The group is expected to suffer a production gap at its Daw Mill colliery but will nonetheless be on track to reach the broker’s forecast of 3m tonnes by the end of 2010.

Investec describes Tarsus as “a key small cap B2B pick on a reasonable rating”. Re-booking trends, ongoing strength in large shows and signs of improvement in the?US are expected to underpin 2010/11 earnings forecasts. The group’s focus on emerging markets was noted as an attractive point given its strong performance last year.

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