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Broker Roundup: fresh Glencore coverage; Senior upped
Four brokers began coverage of diversified commodities trader Glencore (GLEN.L), while analysts saw more upside in Senior (SNR.L) following an upbeat outlook from the manufacturer.
‘An uncertain macro backdrop and uninspiring set of inaugural Q111 results have led to weak trading conditions for Glencore shares in recent weeks,’ said analysts at Credit Suisse as they began covering the stock with an ‘outperform’ rating and target price of 600p.
They added: ‘However, we expect Glencore’s unique business model, diversified earnings streams and fast-acting approach to growth to deliver value over the medium term and we expect a stronger trading/demand environment to lend support in H211.’
The analysts said that following Glencore’s stock market flotation in May, the next six to 12 months would be critical for the company in allaying investor concerns around mergers and acquisitions, corporate governance, proprietary trading risk and industrial asset volume growth.
- Liberum Capital began coverage of Glencore International with a ‘buy’ rating.
- UBS began coverage of Glencore with a ‘buy’ rating and 630p price target.
- Citigroup began coverage of Glencore International with buy rating and 570p price target.
Upgrades, raised price targets
- Meanwhile, Peel Hunt raised its price target for Senior to 185p from 170p, giving the stock a ‘buy’ rating.
- Altium hiked its price target for Senior to 185p from 174p, with a ‘buy’ rating.
- Credit Suisse raised Northumbrian Water (NWG.L) to ‘neutral’ from ‘underperform’.
- JP Morgan hiked Cable and Wireless Worldwide (CWP.L) to ‘neutral’ from ‘underweight’.
- Espirito Santo Investment Bank raised student landlord The Unite Group (UTG.L) to ‘buy’ from ‘hold’, hiking its price target for the stock to 248p from 226p.
- Investec raised defence technology company Qinetiq Group (QQ.L) to ‘hold’ from ‘sell’, hiking its price target to 108p from 95p.
- Altium raised aerospace parts supplier Umeco (UMC.L) to ‘buy’ from ‘hold’.
- Seymour pierce raised Wolfson Microelectronics (WLF.L) to ‘hold’ from ‘sell’.
- Canaccord Genuity raises its price target for software and services firm Anite (AIE.L) to 87p from 80p, with a ‘buy’ rating.
- Peel Hunt upped its price target for Anite (AIE.L) to 90p from 85p, with a ‘buy’ rating.
- Seymour Pierce hiked its price target for Wolfson (WLF.L) to ‘hold’ from ‘sell’.
- Goldman Sachs raised its price target for Northumbrian Water (NWG.L) to 487p from 415p, with a ‘neutral’ rating.
- Goldman raised its price target for water and waste firm Pennon (PNN.L) to 720p from 705p, rating neutral.
- Panmure Gordon hiked its price target for Shire (SHP.L) to £17.50 from £14.00, with a ‘hold’ rating.
- Investec raised its price target for oil and gas services firm Hunting (HTG.L) to 768p from 705p, giving the stock a ‘hold’ rating.
- Goldman Sachs upped its price target for Severn Trent (SVT.L) to £17.17 from £15.84, with a ‘neutral’ rating.
- UBS upgraded United Business Media (UBM.L) to ‘buy’ from ‘neutral’, removing the stock from its ‘least preferred’ list.
Downgrades and lowered price targets
- Credit Suisse downgraded Premier Foods (PFD.L) to ‘neutral’ from ‘outperform’.
- Goldman Sachs cut its price target for Imagination Technologies (IMG.L) to 630p from 715p, with a ‘buy’ rating.
- Royal Bank of Scotland reduced its price target for building and environmental consultancy WSP Group (WSPG.L) to 380p from 405p, giving the stock a ‘buy’ rating.
- Panmure downgraded Bellway (BWY.L) to ‘hold’ from ‘buy’.
- Panmure cut Persimmon (PSN.L) to ‘hold’ from ‘buy’.
- Peel hunt cut telecoms firm Daisy Group (DAY.L) to ‘hold’ from ‘buy’.
- Espirito Santo cut IG Group Holdings’ (IGG.L) ‘fair value’ to 404p from 422p, with a ‘hold’ rating.
- Citigroup cut its price target for Cable and Wireless Worldwide PLC (CWP.L) to 45p from 54p, with a ‘hold’ rating.
- Espirito Santo cut Cable and Wireless Worldwide’s ‘fair value’ to 45p from 65p.
- Goldman Sachs cut its price target for Cable and Wireless Worldwide to 49p from 63p, with a ‘neutral’ rating.
- JP Morgan reduced supplier of materials to solar cell makers PV Crystalox Solar (PVCS.L) to ‘neutral’ from ‘overweight’.
- Credit Suisse downgraded safety equipments group Halma (HLMA.L) to ‘neutral’ from ‘outperform’.
- Collins Stewart started coverage of disabled-care provider Caretech (CTH.L) with a ‘buy’ rating and target price of 185p.
The Citywire guide to investment trusts
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Look up the shares
- Glencore International PLC
- Senior PLC
- Northumbrian Water Group PLC
- Cable and Wireless Worldwide PLC
- The Unite Group PLC
- Qinetiq Group PLC
- UmeCo PLC
- Wolfson Microelectronics PLC
- Anite PLC
- Pennon Group PLC
- Shire PLC
- Hunting PLC
- Severn Trent PLC
- United Business Media
- Premier Foods PLC
- Imagination Technologies Group PLC
- WSP Group PLC
- Bellway PLC
- Persimmon PLC
- Daisy Group PLC
- IG Group Holdings plc
- PV Crystalox Solar PLC
- Halma p.l.c.
- Caretech Hldg PLC
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by Gavin Lumsden on Mar 07, 2014 at 18:53