Bodycote A Winner?

“Interactive Investor” is a UK firm which describes itself as the UK’s number one flat-fee investment platform. The firm like many around the world is making predictions about which companies are going to survive and prosper after COVID-19. One which the company mentions is commercial heat treating giant Bodycote and their stated reasons are below-basically they feel that some of Bodycote’s competitors will not survive the current crisis. A condensed version of their thoughts are below with the complete article available at Interesting theory, time will tell.

“A team of city analysts name the companies they think will emerge stronger post Covid-19. Heavily-sold shares in JD Sports Fashion (LSE:JD.)Auto Trader (LSE:AUTO) and Paragon Banking Group (LSE:PAG) were today among 32 stocks backed by a City firm to “survive and thrive” in the Covid-19 markets crisis. Peel Hunt’s list of companies it expects to emerge from the pandemic with stronger market positions and growth prospects covers 11 sectors, with Bodycote (LSE:BOY) and Avon Rubber (LSE:AVON) among the industrials and Dunelm (LSE:DNLM) and ASOS (LSE:ASC) the other two stocks from the retail category. The broker uses seven themes to determine its “clear winners”, including balance sheet strength, technology adoption and potential exposure to significantly increased government spending. It also looks for companies focused on opportunity rather than survival. On Bodycote, Peel Hunt noted that the heat treatment firm’s competition was made up of local private companies that might not last a protracted crisis. This would provide the opportunity to acquire high-class assets in an industry where meaningful M&A is rare. Bodycote, which is in the interactive investor Aggressive Winter Portfolio, is tipped to rise from 582p to 800p. The third industrials stock on the list is performance materials business Coats.”