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Broker spotlight - Barclays, Apple, Shire, Glaxo, William Hill, Summit...

Last updated: 21:41 01 May 2015 AEST, First published: 20:41 01 May 2015 AEST

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Berenberg has chopped its rating on Barclays (LON:BARC) to ‘sell’ even though it has the potential to emerge as a long-term winner in the sector. 

Alas, the broker sees that eventuality moving further way following the latest update as the problems at the investment bank seem to have got worse.

The price is now price target to 200p as the broker sees it as unlikely that the core 12% return on equity target will be hit.

UBS has trimmed its estimates for Apple (NASDAQ:AAPL) watch sales in 2016 to 31mln from 40mln.

Internet search interest has been much lower than for the iPhone and iPad it says, while UBS sees 7% rather than 10% of the expected iPhone 5/6 users as buyers.

Longer term it remains bullish and says Apple is right to go slowly as it sees the wrist as a natural place to put Apple technology.

Summit Therapeutics’ (LON:SUMM) receipt of a US patent for  the use of SMT 19969 in the treatment of C. difficile infection strengthens the group’s IP portfolio says N+1 Singer.

Top line data from a Phase II trial is expected in the second half of  2015, while the group’s other clinical programme, SMT C1100 for DMD, is currently in a modified diet Phase Ib clinical trial and on track to deliver top line data in the third quarter. 

Virgin Money (LON:VM) is probably 10 years ahead of the market in terms of distribution channel and digital offering, enabling the business to generate positive operating leverage as the business grows, says Canaccord.

Growth prospects for the franchise are good given the low reliance on base rate rises to achieve NIM growth. Strong retention rates post the recent deposit re-pricing are encouraging. Buy with a 445p target price.

Drug company Shire (LON:SHP) is in good health , Jefferies reckons.

The stockbroker upped its target price on Shire shares this morning by 6% to 6150p and stuck with its ‘buy’ rating.

It comes after the FTSE 100 company reported rising profits and sales in its first quarter earlier this week.

The pharmaceutical giant was helped by a US approval of its hyperactivity drug to treat binge-eating disorder.

“We foresee numerous pipeline catalysts this year to drive potential earnings upgrades , more than offsetting the relatively anaemic, by Shire's standards, growth in the coming quarters,” said Jefferies. 

GlaxoSmithKline (LON:GSK), meanwhile, had its share price target upgraded  by Berenberg analysts on Friday from 1560p to 1615p.

The note was sent out prior to a Glaxo announcement this morning, which said the US Food and Drug Administration has approved Breo Ellipta for the treatment of asthma in patients over the age of eighteen

Elsewhere, Jefferies lowered its expectations for shares in Ladbrokes (LON:LAD), William Hill(LON:WMH), it now thinks they’re worth 110p and 380p respectively.

Deutsche Bank kept its ‘buy’ stance on Kaz Minerals (LON:KAZ) but cut its share price target on the Kazakhstan-focused copper miner by 11p to 334p.



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