Investors advised to ‘hold’ as outlook for Johnson Matthey remains cautious

As Johnson Matthey updates the market Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.
 
“Johnson Matthey’s share price has taken a dip this morning as a result of news that profits for the year ahead are likely to be broadly in line with last year. This lack of growth is a result of the ongoing theme of the strength of Sterling, which has impacted other companies, and the loss of its contract with Anglo Platinum.
 
“Investors will be pleased to see Johnson Matthey’s emissions control business continues to perform well as it accounts for a significant proportion of operating profits. In a world increasingly concerned with cleaning up its environmental act, it is well placed as the world leader in the production of catalytic converters and has seen improved demand for its technologies.
 
“We continue to recommend Johnson Matthey as a ‘hold’ for investors. The company has highlighted it is cautious on its outlook and the share price is quite highly rated, largely trending sideways since its outperformance last year.”