Best of the Brokers for 5 April 2013


Centamin PLC

Canaccord Genuity has slashed its rating on the Egyptian miner from “speculative buy” to “sell” and dropped its target price from 90p to 38p. The broker now thinks uncertainty in Egypt, particularly around a mining licence decision, has put a lid on positive movement in the shares for now, in spite of the firm’s strong results. Canaccord is also taking a more conservative view on Centamin’s output schedule.


AZ Electronic Materials

Liberum Capital has a “buy” rating on the advanced chemicals and materials group. The broker sees 2013 as a year of transition for AZEM, with a shift towards new products launching in 2014. Liberum has trimmed its revenue forecasts by 0.6 per cent and earnings per share by four per cent for the year on weaker demand for dielectrics.


Jupiter Fund Management PLC

Espirito Santo has started covering the fund manager with a fair value of 408p. The broker believes Jupiter’s strong brand, scalable business model and exposure to the growing UK savings market will continue to attract money to its funds. Espirito Santo also sees potential for a dividend hike now the firm has paid down its debts, given that Jupiter could add £60m cash to its balance sheet per year.