One to watch: International Personal Finance

Accompanying the AGM of International Personal Finance (IPF) was an update on trading. The trends of improving credit quality and operating efficiency announced in the first quarter have continued and this prompted a marked increase in the share price. So is there more to go for?

IPF is a "doorstep lender" offering relatively small, unsecured sums of money, typically ranging from 50 to 1,000. It has about 2.2 million customers in Poland, Mexico, Hungary, Czech Republic and Slovakia. It aims to optimise the profitability of these established markets while developing new markets.

Consensus earnings per share forecasts are for growth in excess of 20 per cent for this year and next as a result of falling impairment charges and an increase in credit issued. A risk to forecasts is if economic conditions in one of its key markets deteriorate.

However, competition is limited, the potential number of customers who are outwith the banking system is vast, the return on capital employed is significant and the shares can be purchased on a prospective price-to-earnings ratio of about 11x. I consider that the share price has further to run.

International Personal Finance

360p -4.5p

Scotsman says BUY

• The value of your investments may fall and you may get back less than you invested. This does not constitute investment advice and you should take professional advice regarding the suitability of this company for your portfolio.

BROKER SNAPS

Diageo

1,275p -26p

Broker says BUY

RBS Equities has reiterated its "buy" rating on drinks giant Diageo, saying: "Our bull case scenario sees Diageo moving into the top tier of global consumer goods companies and establishing a premium rating for the stock. We believe it can achieve this through faster emerging-market growth."

Anglo American

2,913.5p -65p

Broker says OUTPERFORM

RBC Capital Markets poured cold water on reports that De Beers – in which Anglo American holds a 45 per cent stake – may be split into mining and marketing outfits. Instead, RBC thinks cash from the mines will be used to increase production and "perhaps expand the downstream activities".