One to watch: LSL Property Services
Published Date: 07 April 2011 By Bryan Johnston of Brewin Dolphin LSL

Property Services embraces most aspects of the residential property market. These include surveying and valuation services, estate agency and letting via a chain of high street branches. With the property market swathed in gloom, one might have thought the attractions of an operator in the sector would be pretty limited. However, challenging markets tend to drive out less-efficient, financially-exposed competition and certainly LSL has prospered over the past 12 months, despite a very difficult year in its core markets.

The company has critical mass, which allows it to capitalise on even reduced activity, while its allied support services provide other useful revenue; in 2010, some 61 per cent of the company's revenue was derived form estate agency and 39 per cent from surveying. The company announced a doubling of pre-tax profits, although it acknowledged that volumes had fallen. The group's confidence in the future was exemplified by a 56 per cent increase in the total dividend. LSL looks a good example of a fashionable company in a very unfashionable sector that could well repay patience.

LSL Property Services
245p -8.5p
Scotsman says BUY

• The value of your investment could fall and you may get back less than you invested. Take professional advice if you have any doubt about the suitability of this company for your portfolio.

BROKER SNAPS

Barclays
294.8p +8.05p
Broker says BUY

CANACCORD Genuity has upgraded its recommendation on Barclays from "hold" to "buy" and its target price from 313p to 330p ahead of the publication on Monday of the Independent Commission on Banking's interim report. The broker said that the report should be a catalyst for the UK's banks.

Bovis Homes
430.1p -5.1p
Broker says NEUTRAL

Jonathan Jackson, head of equities at Killik & Co, has downgraded his rating on Bovis from "buy" to "neutral". Jackson said: "Following a strong performance over the past few months, the shares are now trading at an 18 per cent discount to the firm's net asset value. We encourage investors to take profits."