SHARES in Bodycote climbed more than five per cent after broker Arbuthnot said it believed some of the Macclesfield-based engineering giant’s markets were now close to their turning points and a large amount of company costs was being eliminated.

It also cited Bodycote’s low levels of debt.

The shares gained 9.1p to 169.7p after the note was published, adding £17m to Bodycote’s market value of £302.2m.

Arbuthnot upped its rating for Bodycote to buy and set a target price of 200p.

The broker expects a sharp increase in profits for Bodycote in 2010 and 2011, boosted by good momentum from new outsourcing agreements and stable depreciation charges.

Bodycote, whose activities include heat-treating jet engine turbine blades and other parts for plane and car makers, has cut hundreds of jobs and closed or combined more than 30 sites to save £18m a year.