One to watch: Barco

There has been a drive to replace old analogue systems from Hollywood studios, directors and cinema owners. Digital projectors are cheaper, more efficient and guarantee better quality. This is a burgeoning market, with Barco one of only three companies working in this field. In 2010, orders for digital units were up almost 200 per cent.

The firm restructured in 2009. This has turned the business around; last year there were improvements in the order book across all but one of its divisions. This momentum should continue.

There are also good margins from, among other areas, its healthcare arm. This, along with its cinema operations, accounts for more than 50 per cent of Barco's turnover – and a lion's share of the profits. A well-run company – and a potential star of the small-cap world.

Barco

€57 -€0.06

Scotsman says BUY

• Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.

BROKER SNAPS

Prudential

740p +11.5p

Broker says OUTPERFORM

THE "decade of re-rating" for Prudential has been "unjustified", according to RBC Capital Markets, which raised its target price from 800p to 880p after increasing its earnings-per-share forecasts by 16 per cent for 2011 and 18 per cent for 2012. RBC highlighted Prudential's strong Asian savings business.

Compass Group

585.5p +10.5p

Broker says BUY

CHARLES Stanley has maintained its "buy" recommendation on catering giant Compass. The broker added: "Compass Group published good interim results and after absorbing the expected profit impact from the tragic events in Japan, expectations for the year remain unchanged."