Shares in Coates Hire continued their upward momentum yesterday...

Shares in Coates Hire continued their upward momentum yesterday as analysts upgraded earnings forecasts following the company's profit upgrade on Friday and upbeat comments about the construction cycle.
Brokers expect the company to report significant earnings growth this year. JP Morgan yesterday upgraded its full year 2004 net profit forecast by 5.3 per cent to $42.7 million, and said it expected the shares to track upwards ahead of a strong first-half profit result.

The equipment hire group said on Friday it expected first-half sales growth to be in the range of 12 to 15 per cent, "well in excess of sector growth". It added that it expected the trend to continue and possibly accelerate. It had previously indicated sales growth would be in the high single-digit range.

Coates said the better sales would result in 2003/04 net profit jumping 20 to 25 per cent above the $33.2 million it recorded last year.
Watch for a possible b/o now at 2.90