Numis has upgraded its 2009 and 2010 estimates by 15 and 20 per cent respectively on the basis of rising automotive production and benefits feeding through from restructuring initiatives. However, the broker issued a target price of 180p – below yesterday’s closing price of 210.4p – in the belief 15.8x 2010 EPS is looking stretched.
Investec rates the stock a “buy” after its fair value model recommended an upgrade from “hold”. While Investec thinks medium-term consensus is too optimistic, the firm sees decent long-term prospects and has moved its 12-month target price to 985p. “We still see plenty of fundamental value on the table,” an analyst said.
Noble Research re-iterates its “positive” recommendation as the stock combines good value with highly visible short-term NAV growth rate. Unite, which trades at 16 per cent discount to Noble’s full-year 2010 NAV, is forecast to deliver accretion of £146m or 92p between 2012 and 2014. The company reports its prelims in March.
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