Broker snap: Singer expects Trinity profit upgrades

Interim results from Daily Mirror owner Trinity Mirror were ahead of expectations but the publisher faces 'aggressive competitor activity' in the second half of the year, Singer Capital Markets warns. Nevertheless, the broker predicts that the first half performance should see market consensus forecasts for full year pre-tax profit move closer to £95m from the current level of £85m. The broker rates the stock a "buy" and says the valuation remains "very low at potentially just 3x earnings". "The company caveats its outlook with the market wide standard statement on macro, but goes on to say that it expects 'further modest improvement in the second half', albeit with continued month on month volatility. Excluding [recently acquired] MEN July revenues are expected to fall 6% with both circulation and advertising at the same level. Within the divisions advertising is expected to be down 9% for Regionals and flat for Nationals while Circulation is expected to decline by 6% for both units. Overall July revenues are expected to increase 3% including MEN," Singer analyst Johnathan Barrett said.