Sterling Energy
Has a compelling risk/reward profile, according to Evolution, which reckons the stock is a buy up to 29p (current price 11p).
Entertainment Rights
Collins Stewart makes some minor earnings downgrades on the back of interims, but says the acquisition of Classic is a guddun. Says buy up to 53p (current price 26p).
Compass Group
Andrew Darke at Evolution is not one to mince his words as he says sell down to 310p after a decent trading update.
He explains: ‘The ratings at 20x not only fully reflect the trading recovery that is occurring, but are already at a level that corporate transactions have occurred. Clearly food inflation concerns as […]
Clearspeed
The company’s broker KBC Peel Hunt admits the licence sign ups for its acceleration chip have been poor to date, but it expects a turnaround soon.
It adds: ‘Sign-ups and pipeline development into H2 have been materially better and the group can look into 2008 and 2009 with some optimism.’
Sphere It
Mitchells & Butlers
Evolution still a buyer even after lopping its price target back to 710p from 900p.
It says: ‘The 30% drop M&B’s share price in last three months shows just how torrid the summer has been with the collapse of the Tchenguiz deal, the credit crunch, the unwelcome appearance of the ‘Leylandii’ hedge (the losses just […]
Kesa
Landsbanki has been in with management, which reckons the co is fairly insulated against against the Competition Commission probe into rip off warranties. The broker isn’t convinced and has repeated its reduce recommendation.
See what you think: ‘Kesa shares have fallen as the market has focused on the risks to future earnings posed by a […]
Debenhams
Rent-a-quote Nick Bubb, who is at Pali International now, has his own slant on the demise of Debs. He reckons the debt issue has been overdone and says profits may even suprise.
He adds: ‘As it is, the dividend yield is at least 6/7% at this level and the PE is only 8/9. Given the […]
Dana Petroleum
Evolution is bullish after the interims and says add up to 1246p.
It says: ‘The market should like the strong H1 results and the prospect of 30 exploration and appraisal wells being drilled in the next two years after a lean H1 for drilling news.’
Sphere It
Johnson Matthey
Bear Stearns has initiated coverage with a buy recommendation and a 1930p price target.
TUI Travel
Been a rough ride of late for passengers keyed into this stock. Merrill Lynch is keeping the faith with a buy. Reckons the synergy benefits are likely to be far better than anyone in the market is predicting. Underestimate management at your peril.
Sphere It
Connaught
Shares have reacted positively to today’s acquisition. Seymour Pierce has upgraded to outperform from neutral with an 18p a share price target.
Debenhams
The shares are well down as the market speculates that it may well have breached its banking covenants. For more info, watch this space.
Pipex
The company’s strategy update is going down a storm. It has prompted Landsbanki to drop its price target for the shares to 9.3p from 13p. Given the broker is convinced everything is going Pete Tonge at the ISP, it is interesting then it retains a hold recommendation on the stock.
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Care UK
KBC says reduce after a rather dull set of results.
Smiths Group
Dresdner Kleinwort has raised its price target after results to 1200p, up 100p and says its hold rating may be upgraded. Results were decent, says the decision to look for a new chief exec a good one.
Sphere It
WPP
Morgan Stanley has gone to overweight from equalweight on the stock, but reduced its price target to 770p from 800p.
Johnson Matthey
Bear Stearns has started this one with an outperform and a 1930p a share price target. A great way to buy into the car catalysts market, the broker claims.
Aberdeen
Landsbanki says today’s trading update endorses the broker’s buy recommendation. Broker says: ‘Our recent analysis on performance, asset gathering and churn across the peer group identified Aberdeen as an out-performer and this progress is not reflected in its valuation discount.’
Sphere It
Chloride
Citigroup says buy up to 195p after the trading statement. Broker says: ‘On the back of today’s trading statement we have tweaked up our top of consensus 2008 and 2009 EPS forecasts by 1% and 2%, respectively, to reflect the strong 1H08 outturn.,
Sphere It
Miners
Morgan Stanley sees no end to the industry’s ’super-cycle’. Broker says: ‘We remain confident in the strength and duration of the commodity supercycle and maintain a preference for the diversified miners, underpinned by continued earnings growth.
Furthermore we see potential valuation upside of up to 70% if the capital of the miners can be efficiently allocated […]
