Best of the Brokers August 27, 2012 TULLOW OIL Morgan Stanley reiterates its “overweight” rating on Tullow Oil. It believes the shares are undervalued given Tullow has opened three new oil regions in the past year. Development concerns are “overdone”, it says. RESTAURANT GROUP Panmure Gordon increases its target price to 375p from 327p and reiterates its “buy” rating ahead of Friday’s [...]
Analyst Views | Are further payouts in line for micro focus investors? August 16, 2012 JULIAN YATES INVESTEC We see Micro Focus as a core cash-backed value opportunity in the sector, with today’s cash return supporting this view. With more cash returns likely down the line, and forecast expectations sensibly set, we remain buyers and retain our 600p target price. MICHAEL BRIEST UBS Micro Focus returned a 50 pence per [...]
BEST of the BROKERS August 15, 2012 HSBC Investec has moved the bank from “buy” to “hold”, saying an “assortment of headwinds” means stock is unlikely to rise from current highs. Target price reduced to 590p. ESSAR ENERGY JP Morgan Cazenove has downgraded Essar from “overweight” to “neutral” and reduced the price target from 175p to 150p, saying regulatory hurdles in India [...]
Standard Life’s profits expand ahead of reform August 14, 2012 INSURANCE giant Standard Life yesterday reported an unexpectedly large jump in profits and said it expects to grow even more thanks to forthcoming regulatory changes. Chief executive David Nish told City A.M. that the imminent implementation of the retail distribution review – which will outlaw commission payments to financial advisers – will benefit Standard Life [...]
Aviva aims to sell divisions by end of year August 9, 2012 INSURANCE giant Aviva hopes to sell some of its underperforming units by the end of the year, its executive chairman said yesterday. John McFarlane confirmed that his firm has appointed investment banks to advise on the disposal of 10 units, telling analysts that some of the deals are set for completion in the next six [...]
Legal & General considers takeovers to boost growth August 7, 2012 INSURER Legal & General (L&G) is considering a number of small takeovers to accelerate growth, its new chief executive said yesterday, as the firm unveiled a strong set of half-year results. “You’ll probably see some bolt-on acquisitions – the balance sheet is very strong and there are lots of assets for sale,” said Nigel Wilson, [...]
BEST of the BROKERS August 7, 2012 F&C ASSET MANAGEMENT Singer Capital Markets rates the asset manager “buy” with a target price of 110p. The broker has cut its earnings estimates by four per cent for the next year to reflect weakness in the euro, as 40 per cent of its net revenue is euro denominated. However, Singer is confident the firm [...]
Aviva profits to fall in advance of great sell-off August 5, 2012 AVIVA is expected to announce a fall in profits this week as its new executive chairman John McFarlane prepares to flesh out proposals to streamline the business with a series of disposals. The firm adopted a radical change in direction following the resignation of former chief executive Andrew Moss in May, pleasing investors who felt [...]
ANALYST VIEWS | CAN INVESTORS BANK ON A RECOVERY AT ROBERT WALTERS? August 2, 2012 ROBERT MORTON INVESTEC As expected, difficult trading conditions impacted significantly on the group in the first half and although gross profits were modestly ahead of last year – with all regions showing some growth – operating profits more than halved. We are not changing our forecasts or target price on the back of today’s results. [...]
ANALYST VIEWS | DOES NEXT WIN THE RETAIL OLYMPIC GOLD FOR ITS PERFORMANCE? August 1, 2012 KATE CALVERT SEYMOUR PIERCE While not quite a gold medal winning performance from the official Olympic supplier of clothing and homewares, Next has delivered a highly commendable one nonetheless, slightly above the top end of its guidance. Next is a well run and highly cash generative company. BETHANY HOCKING INVESTEC This statement is further evidence [...]