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'Buy into the public sector revolution with Tribal'

Support services is a sector well worth trawling for gems, a fact recognised by broker T&G, which has taken a bullish view on several of its constituents. Research notes circulated to the market in May revealed a fondness for several stocks on Aim, such as financial training firm Intellexis.

Intellexis' 'Key Skills' deal seems to be meeting expectations, so much so that analyst Johnathan Barrett has raised his stance on the company from hold to buy.

On the main board, the broker has initiated coverage of Aim graduate Tribal with a buy note and a 274p target price. Although margin and equity dilution could be on the cards, T&G says investors are buying into 'the public sector revolution'.

In other areas, Canterbury Foods, gets a strong buy steer, but T&G is not so generous to pubs venture Regent Inns, which it reckons investors should sell. Experienced analyst Nigel Popham said the outlook looked bleak after a recent trading update. 'The only support for the shares is the dividend yield of over ten per cent, which is unlikely to be sustainable,' he argues. He points to the half time numbers to 3 January, which revealed like-for-like sales declines in the Walkabout and Jongleurs brands.