ING advises investors to “buy” BSkyB shares citing its “decent financials” and strong operating metrics despite the consumer recession. Believes its recent results indicate it’s a company for “BT to worry about”. Says the shares are “too cheap by far,” and that the market is underestimating its growth plans. Expects it to grow more rapidly beyond 2010 in line with its rapid earnings per share growth.
UBS initiates coverage of miner Eurasian Natural Resources Corporation (ENRC) with a “buy” rating and £12.00 share price target, implying 28 per cent potential upside. Praises its exposure to three of what it believes are the top commodities: iron ore, aluminium and copper. Says its integrated model gives it a competitive advantage and notes its flexibility and scalability have both been proved given its performance during the downturn.
Goldman Sachs initiates coverage of self storage firm Big Yellow with a “buy” rating, saying improving economic conditions and rising housing transactions will drive demand in the sector. Believes last December’s occupancy rate of 54 per cent will mark the low point in the cycle, and predicts the occupancy rate will rise to 70 per cent by March 2012. “This will see Big Yellow deliver the fastest earnings growth in the sector,” it says.