BNP Paribas has cut its valuation of the oil group by 10 per cent to a fair value target price of £11.65, and rates the stock “neutral”. The broker says disappointing drilling results in Ghana and continuing uncertainty over its Ugandan operations leaves the company depending on future drilling success. It adds that Premier Oil is a better bet in the sector, with further potential in its North Sea portfolio.
Evolution Securities rates the pharmaceutical firm a “sell”, with a target price of £28.05. Evo expects AZ to maintain its earnings at between $6.35 and $6.55 a share in its third quarter results on Thursday, as the company gets closer to seeing several patents expire in the US. On the other hand, the broker says there is potential for seasonal flu vaccine sales to increase.
DAILY MAIL & GENERAL TRUST
Numis rates the media group a “buy” with a target price of 707p. The broker believes the media sector has made more operational progress than is reflected in share prices, and adds that DMGT can achieve 2011 earnings per share of 58p, rising to 80p by 2013. It adds that the firm has several growing businesses, though its regional portfolio is unlikely to regain its historic margins.