logo-loader

Broker spotlight - BHP Billiton/South32, Zoopla, Asos, Sky, DP Poland...

Last updated: 22:37 06 May 2015 AEST, First published: 21:37 06 May 2015 AEST

no_picture_pai

Shareholders vote today on the demerger of BHP Billiton’s (LON:BLT) unwanted assets into South32 and the mining giant has been busy showing analysts around the assets on their way out.

JP Morgan sees cost savings rather than improved production or longer mine lives as the driver of the rag bag of aluminium, silver, lead and manganese operations

The staff also generally seemed supportive said the broker despite the prospect of job cuts.

JPM estimates BHP's underlying earnings will fall around US$2bn post the deal, with net debt largely the same, leaving a slightly tighter balance sheet. 

Neutral is the broker’s rating with a 1,600p price target.

Zoopla’s (LON:ZPLA) move to buy energy  comparison site uSwitch was praised by Berenberg this morning.

Last week, the online property portal announced the £160mln acquisition. Boss Alex Chesterman said the move would create a “single resource for customer’s property needs.”

According to analysts at Berenberg, Zoopla is now one step ahead of Rightmove (LON:RMV) in expanding its portal to include other businesses  related to the home.

“We are raising our price target of Zoopla to 2600p (from 2500p) as a result of the growth potential of the newly acquired company ,” said the broker.

JP Morgan raised its target price on online fashion retailer ASOS (LON:ASC) by 400p to 4000p this morning.

ASOS showed clear top-line momentum through the second quarter which we expect to have continued into Q315,” said JP Morgan’s Georgina Johanan.

"Whilst we are only half way through the current quarter, we raise our full-year PBT forecasts by 4% to reflect our confidence on the top line. 

“With the shares  now 14% below recent highs, we take this opportunity to reiterate our 'overweight' recommendation.”

After reporting its results yesterday, Aberdeen Asset Management (LON:ADN) had its share price target cut by RBC Capital Markets.

The broker reckons the stock will underperform and now has a 440p target price on the shares.

Despite reporting a £270mln profit, Aberdeen was hit by heavy fund outflows as investors bailed out of emerging markets.

Jefferies, meanwhile, kept its ‘hold’ ratings on Sky (LON:SKY) and Vodafone (LON:VOD) but decided to up its share price target by a fraction on both.

House broker Peel Hunt has given drug distributor and developer Clinigen (LON:CLIN) a bullish write-up following its acquisition of Idis for £225mln.

The deal is strategically compelling, argues the broker, strengthening its competitive advantages in all three of its existing divisions, with the potential for revenue synergies to benefit each. 

Idis also adds a new division supplying unlicensed medicines on demand, opening up a large (possibly US$5bn plus) market opportunity for the company.

Greater critical mass meanwhile, gives Clinigen the clout to capitalise on the opportunity and the potential means a punchy new price target of £10 against 717p previously. Clinigen is also Peel Hunt’s top pick in the sector.

Peel Hunt is also upbeat on DP Poland (LON:DPP), another client, where the progress made by the Domino’s pizza delivery business last year has continued into the first quarter. 

DPP is the master franchise holder for Poland and like-for-like gross profit rose by 29% in the quarter, while system sales rose by 17%.

With a market cap of just £18mln, Peel Hunt said the upside is substantial if the group delivers as expected, with seemingly no pun intended.

Akers Bioscience's (LON:AKR) target price remains unchanged at 310p at finnCap follwoing the appointment of InstaNatural as its online marketing partner with exclusive rights for Amazon representation for the company’s METRON breath ketone test.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

6 hours, 11 minutes ago