viewUtilitywise plc

Utilitywise and Hayward Tyler among finnCap favourites for 2016

finnCap reckons firms generating enough cash to deliver a growth strategy or solid dividends will do well this year

Inland Homes, Vectura and Acal did well for finnCap last year

City broker finnCap has sent out its top stock picks for 2016, with tech, mining, energy and engineering players all featuring.

Analysts at the firm have put their necks on the line again, this year listing 11 of their favourite London-listed entities.

Those generating enough cash to deliver a growth strategy or solid dividends will be prized over the next twelve months, they reckon.

Notable picks include Hayward Tyler (LON:HAYT) and Constellation Healthcare (LON:CHT), both had a decent run in 2015.

The latter is an RCM, or a revenue cycle management, company – collecting monies owed by government, insurers and patients for thousands of doctors in the US.

Shares climbed 25 per cent last year to 168p and analyst Guy Hewitt has put a target price of 310p on Constellation's stock – an 84 per cent upside on current levels.

Hayward Tyler, meanwhile, designs, manufactures and services performance-critical pumps - used in situations where failure would be catastrophic.

Shares climbed 15 percent to 93p each last year and finnCap’s David Buxton believes a further 20% gain is achievable in 2016.

AIM-listed Utilitywise (LON:UTW) is another name on the hot list.

The North Tyneside firm specialises in getting companies the best value for their energy and water contracts.

Analyst Mark Paddon reckons shares, now worth 175p apiece could climb by 50 per cent, close to the 270p mark.

Mining and oil, sectors in the doldrums, have one name each among finnCap’s favourites.

Martin Potts fancies Africa-focused Petra Diamonds with a price target of 197p – a hefty 125% premium on today’s price.

Meanwhile oil expert Dougie Youngson is keen on Wentworth Resources, a company with gas reserves in Tanzania and Mozambique.

Other picks include cardiovascular monitoring specialist LiDCO, energy storage firm redT Energy and IT company IS Solutions.

Estate agent LSL, Sunderland-based furniture retailer SCS and software provider Proactis make up the rest.

Last year finnCap went for ten stocks, six ended up in positive territory but weakness of two companies in particular meant the portfolio performance was little more than flat.

Inland Homes, Vectura and Acal were the best picks.

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