One to watch: Swedish Match
While sale of snus was banned in the European Union in 1992, Sweden and Norway were granted exemptions when they took up membership. Sweden is campaigning for the dropping of the law that prevents the country from exporting snus in the EU. Outside of Sweden, snus is gaining popularity in the US, where Swedish Match is the largest player in the mature, but declining chewing tobacco market.
While Imperial Tobacco has expanded its capacity in Sweden and competition in the US remains fierce, the company's loyal customers in its home market should continue to help to drive sales and maintain market share. The shares are maybe slightly expensive relative to the European tobacco sector, but the growth opportunities seem encouraging.
Swedish Match
SKr209.6 +SKr0.5
Scotsman says BUY
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BROKER SNAPS
Goals Soccer Centres
127p +2p
Broker says BUY
Ahead of first-half results from Goals Soccer Centres on 1 July, Numis reiterated its "buy" rating on the East Kilbride-based operator of five-a-side football pitches. But Numis added: "After the late shock of severe snowfall in December, we doubt management will encourage any upward movement in forecasts."
3i
274.1p +1.2p
Broker says BUY
After last month's decision by private equity group 3i to raise its dividend, Andrew Gibson, head of research at Galvan, yesterday issued a "buy" rating. He said: "The hike in the 3i dividend is an important development as it signals a new level of confidence from management over prospects for the group."