Proactive Investors - Run By Investors For Investors

Broker spotlight: Scotland, RBS, Standard Life, Merlin, Orosur Mining...

Broker spotlight: Scotland, RBS, Standard Life, Merlin, Orosur Mining...

After the Scottish decision to stay with the UK, some brokers were quick off the mark to update their views of companies north of the border.

Investec said it expected RBS (LON:RBS) and TSB (LON:TSB) shares to have a rally today but after that there was little further upside. Lloyds (LON:LLOY) remains its preferred ‘Scottish’ bank on fundamentals, it added, and is a 'buy'.

Deutsche Bank, meanwhile,  suggested that for the life insurers the outcome will mean almost as much change as a yes vote and it sees the UK shifting towards a federal model.

It rates Standard Life (LON:SL.) as a buy, target 455p as the main insurance beneficiary of the no vote, though it noted share prices of UK life assurers were not that affected by pre-vote speculation.

Standard Life rose ahead of the vote despite its obvious Scottish associations, but with the uncertainty now lifting the broker expects its shares to push higher.

St James’s Place (LON:STJ) is also a buy for the German broker (target 925p) as it is the most geared to any improvement in UK market sentiment now that uncertainty over the Scotland is removed.

Elsewhere in insurance, Deutsche has upgraded Hiscox (LON:HSX) to hold, noting that the share price has fallen below its target price for the first time in a while.

Credit Suisse has raised its price target for Merlin Entertainments (LON:MERL), the owner of Legoland and Madame Tussauds.

Merlin is a long dated growth story, the broker added, with capacity to generate strong returns on new investment and potential upside from its resort accommodation strategy; good like-for-like growth this year and a better than forecast recovery at Gardaland in 2015.

The new target price is 400p (from 380p), but Credit Suisse retains a 'neutral' view.

Canaccord has raised its stance on defence equipment group Chemring (LON:CHG) after its third quarter trading statement indicated the end of a major balance sheet restructuring.

The revolving credit facility is now £70mln, down from £230mln, and a more appropriate level appropriate for a business generating £400mln in sales said the broker.

Despite low visibility on future orders, increasing global geo-political tensions also look set to provide positive momentum, according to the broker, as it raised its target price to 225p (from 160p) and its rating to ‘hold’ from ‘sell’.

UBS thinks airline easyJet (LON:EZJ) has an increased likelihood of capital returns going forward after the ordinary pay-out ratio was increased from a third to 40% yesterday.

Investors can expect special dividends, perhaps even with the annual results in November, said UBS, which said the gearing target of 15-30% is a likely guide for as and when easyJet is likely to return capital. Hold with a 1,930p price target, it concluded.

Gold miner Orosur Mining (LON:OMI) has made a solid start to its new financial year with first quarter production and costs in-line with full year guidance, said Cantor Fitzgerald.

Shares, though, trade at a notable discount to its peer group across a host of metrics. Given the excellent performance last year, and the solid start made to the current year, Cantor believes this is unjustified and it has a 'buy' recommendation and target price of 32p.

Med tech group ANGLE’s (LON:AGL) latest collaboration, with the University of Southern California in breast cancer, is part of its strategy to  get the support of key opinion leaders in the field of cancer research, particularly those in the United States, said Cenkos.

“We believe that the Parsortix technology will be able to drive forward cancer diagnostics and enable the status of a patient’s disease to be determined in a non-invasive and efficient way.”  Buy, said Cenkos.

PhilW.jpg


Register here to be notified of future ADM Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use