Best of the Brokers for 20 November 2015
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Vesuvius, a molten metal engineer, is set to feel the steel sector’s pain warns Numis, which reiterated its “hold” rating with a target price of 350p. The broker said, thanks to the group’s restructuring, margins are more resilient than in previous down-periods, which means the company’s valuation has its attractions. However, it added that with Chinese exports continuing to destabilise western markets, it was forecasting an eight per cent decline in activity and six per cent drop in growth.
Entertainment One’s interims yesterday saw a strong TV performance offset a weaker film division, and reduced box-office 2016 guidance, prompting Canaccord Genuity to drop its target price from 368p to 323p, and maintain its “buy” rating. It was encouraged by “particularly strong” year-on-year growth in TV production and sales (helped by Peppa Pig’s worldwide popularity), that will help the group meet full-year targets.
Barclays reiterated its “overweight” stock rating and raised its target price five per cent, to 1,030p, for property development and investment company Great Portland Estates after a strong set of results. The broker says it expects “high occupier demand to prevail in Great Portland’s key West End markets, leading to continued strong rental value growth as the supply-demand imbalance prevails”, further boosted by the completion of Crossrail in London.