Numis lowers its target price from 355p to 300p. The broker blames Man’s poor performance on its flagship fund. However, it predicts a long term turnaround for the group based on past form and £1.6bn surplus capital. Many of the risks are now factored into the share price, and it upgrades its recommendation from “add” to “buy”.
Seymour Pierce maintains its “sell” recommendation with a 72p target price, despite an eight per cent increase in revenue that it expects to continue. The broker is concerned that recent tipping legislation will force Carluccio’s to raise prices to retain a margin. Forecasts pre-tax profit of £4.1m, at the bottom end of consensus.
2010 production growth expectations have been dented by the weak global gas demand outlook and the timing of project start-ups. Evolution sees a more confident medium to longer term outlook, while operating profit guidance for LNG was extended to 2011/12, alleviating concerns about profits. Evolution retains its “buy” rating.