BEST OF THE BROKERS
3i GROUP
Killik & Co notes that 3i issued a release this week announcing the sale of its stake in Ålö, a manufacturer of front-end loaders for tractors, for €240m. The sale sees 3i make approximately a four times money multiple on its original investment. The broker says 3i trades on a 22 per cent discount to estimated net asset value and has spotted five separate director share purchases since May. Killik remains a buyer.
FRENCH CONNECTION
Numis says that following a year of dramatic earnings recovery, which saw the shares reach a three year high, French Connection shares have suffered a 40 per cent decline since March. With forecasts solid after first quarter trading was in line with expectations, the group trades on just five times cash-adjusted price to earnings ratio. Numis sees value and reiterates its “buy” recommendation.
FAROE PETROLEUM
Evo Securities notes that due to its high impact nature, the result of the Lagavulin well has hung over Faroe for a while. Now, with the well completed, albeit with a disappointing outcome, Evo believes it is time to focus on the broader Faroe investment case. With rising production in a more favourable pricing environment and four exploration and appraisal wells to spud by the end of the year, Evo believes its positive stance on the company remains valid.