AZ ELECTRONIC MATERIALS
Goldman Sachs rates the specialist technology company as “neutral” with a target price of 390p, but updates its estimates for the company to reflect its new flat panel display forecasts. The broker predicts earnings per share of 35 cents, rising to 39 cents for 2012, and forecasts a price to earnings ratio of 14.4x for 2011, falling to 12.8x in 2012. It does not see the changes as material, so all ratings and price targets remain unchanged.
Morgan Stanley rates the energy services company as “equal weight” with a target price of 750p, and releases new 2011-13 earnings per share estimates after the completion of a £1.05bn cash return and a share consolidation. The 13 per cent upside to its price target compares poorly to its overweight-rated oil service stocks average of 23 per cent, but the broker considers the stock relatively attractively valued and sees limited downside from current levels.
Nomura upgrades the luxury group to a “buy” with a target price of €143, and believes PPR is undervalued, considering the scope for continued group restructuring and momentum and margin upside potential in the luxury sector. The broker sees luxury as continuing to outperform peers through the medium term, driven by both superior like-for-like group and agressive store opening plans.