BEST OF THE BROKERS
COVE
Peel Hunt has downgraded the Mozambique-focused oil & gas explorer from “buy” to “hold” with a target price of 215p, saying that Shell’s offer of £992.4m earlier this week only values the company at 77.7 per cent of its implied value. The broker sees the offer as an early, competitive “knock-out” offer that may not only be appealing to Cove, but may also make it difficult to compete with from third parties considering an offer.
LAIRD
Numis has initiated coverage of the component technology company with a “buy” rating and a target price of 230p. The broker says sentiment in the stock has been supressed from a volatile period when the business was hit by Nokia’s fading fortunes, but it is now attractively positioned with around 25 per cent of revenues from smartphones, tablets and notebook PCs. Numis says this should drive 10 per cent compound annual growth in earnings.
LOGICA
UBS maintains its “neutral” rating on the stock and ups its target price by 41 per cent from 64p to 90p, after fourth quarter results earlier this week saw revenue growth of 2.3 per cent and a stronger order book than expected. The broker was also comforted by finance chief Himanshi Raja’s assertion that their would be no further provisions made for the group’s contract accounting process, which has already been announced at £39m.