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Broker Upgrades and Downgrades & Key UK Corporate Snapshots 28 June 2016

UK Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
GFS G4S Plc Credit Suisse Outperform 200 210
MDC Mediclinic International Plc Citigroup Buy 990 1150
Downgrades
BLND British Land Co Plc Credit Suisse Underperform Underperform 715 505
CAPC Capital & Counties Properties Plc Credit Suisse Underperform Underperform 280 200
CPI Capita Plc Credit Suisse Neutral 1250 900
DLN Derwent London Plc Credit Suisse Underperform Underperform 3195 2185
EZJ easyJet Plc Citigroup Buy Buy 1800 1600
GPOR Great Portland Estates Plc Credit Suisse Neutral Neutral 795 545
HMSO Hammerson Plc Credit Suisse Outperform Outperform 610 495
IHG InterContinental Hotels Group Plc Deutsche Bank Hold Hold 2770 2660
INTU Intu Properties Plc Credit Suisse Underperform Underperform 285 230
LAND Land Securities Group Plc Credit Suisse Neutral Neutral 1185 855
MNDI Mondi Plc Deutsche Bank Buy Buy 1750 1700
PLND Poundland Group Plc Citigroup Neutral
PLND Poundland Group Plc Peel Hunt Buy Buy 300 250
SHB Shaftesbury Plc Credit Suisse Neutral Neutral 965 810
SKG Smurfit Kappa Group Plc Deutsche Bank Buy Buy 2340 2160
Initiate/Neutral/Unchanged
AAL Anglo American Plc Citigroup Sell Sell
ABF Associated British Foods Plc Societe Generale Hold Hold
ASC ASOS Plc Societe Generale Buy Buy
BATS British American Tobacco Plc Societe Generale Buy Buy
BDEV Barratt Developments Plc Deutsche Bank Buy Buy
BKG Berkeley Group Holdings Plc Deutsche Bank Buy Buy
BME B&M European Value Retail Peel Hunt Buy Buy 440 440
BVIC Britvic Plc Societe Generale Hold Hold
BVS Bovis Homes Group Plc Deutsche Bank Buy Buy
BWY Bellway Plc Deutsche Bank Hold Hold
CRST Crest Nicholson Holdings Plc Deutsche Bank Hold Hold
EZJ easyJet Plc Barclays Capital Equal weight Equal weight 1630 1630
IMB Imperial Brands Plc Societe Generale Buy Buy
KGF Kingfisher Plc Societe Generale Hold Hold
MCS McCarthy & Stone Plc Deutsche Bank Hold Hold
MERL Merlin Entertainments Plc Barclays Capital Overweight Overweight 500 500
MKS Marks & Spencer Group Plc Societe Generale Hold Hold
MRW WM Morrison Supermarkets Plc Societe Generale Sell Sell
NXT Next Plc Societe Generale Hold Hold
OCDO Ocado Group Plc Societe Generale Sell Sell
PSN Persimmon Plc Deutsche Bank Hold Hold
RB. Reckitt Benckiser Group Plc Societe Generale Buy Buy
RDSA Royal Dutch Shell ‘A’ Barclays Capital Overweight Overweight 2450 2450
RDSB Royal Dutch Shell ‘B’ Barclays Capital Overweight Overweight 2450 2450
RDW Redrow Plc Deutsche Bank Hold Hold
SAB SABMiller Plc Societe Generale Hold Hold
SBRY J Sainsbury Plc Societe Generale Hold Hold
TATE Tate & Lyle Plc Societe Generale Buy Buy
TSCO Tesco Plc Societe Generale Sell Sell
TW. Taylor Wimpey Plc Deutsche Bank Buy Buy

 

US Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
AGI Alamos Gold Raymond James Market Perform  Outperform
ALXN Alexion Pharmaceuticals Citigroup Neutral  Buy
AMAT Applied Materials DA Davidson Neutral  Buy $24 $28
ABX Barrick Gold CIBC Sector Perform  Sector Outperform
BT BT Group Citigroup Neutral  Buy
CDE Coeur Mining Raymond James Market Perform  Outperform
DEO Diageo Societe Generale Sell  Hold
EGO Eldorado Gold Raymond James Market Perform  Outperform
EXK Endeavour Silver Raymond James Underperform  Market Perform
FRFHF Fairfax Financial Holdings CIBC Sector Underperform  Sector Perform
FNLPF Fresnillo Goldman Sachs Sell  Neutral
GME GameStop Telsey Advisory Group Market Perform  Outperform $35 $35
HVRRY Hannover Rueck BofA Merrill Lynch Neutral  Buy
HA Hawaiian Holdings Deutsche Bank Hold  Buy $41 $41
HSBC HSBC Holdings JP Morgan Underweight  Neutral
HSBC HSBC Holdings Exane BNP Paribas Underperform  Neutral
IAG IAMGOLD CIBC Sector Underperform  Sector Perform
LEN Lennar Raymond James Market Perform  Outperform
MNGPF Man Group Citigroup Sell  Neutral
MET MetLife Sandler O’Neill Hold  Buy
PAAS Pan American Silver Raymond James Market Perform  Outperform
P Pandora Media Morgan Stanley Equal weight  Overweight
PLG Platinum Group Metals CIBC Sector Underperform  Sector Perform
GOLD Randgold Resources Goldman Sachs Neutral  Buy
RIO Rio Tinto Goldman Sachs Sell  Neutral
SCRYY SCOR BofA Merrill Lynch Underperform  Neutral
SSRI Silver Standard Resources CIBC Sector Perform  Sector Outperform
SWDBY Swedbank AB JP Morgan Neutral  Overweight
TCKGY Thomas Cook Group Citigroup Sell  Neutral
THO Thor Industries Wellington Shields Hold  Gradually Accumulate
Downgrades
AGCO AGCO Corp JP Morgan Neutral  Underweight
ADI Analog Devices BofA Merrill Lynch Buy  Neutral
ANET Arista Networks BofA Merrill Lynch Buy  Underperform
ASHTF Ashtead Group Exane BNP Paribas Outperform  Neutral
BCS Barclays Jefferies Buy  Underperform
BCS Barclays BofA Merrill Lynch Buy  Neutral
BCS Barclays JP Morgan Overweight  Neutral
BCS Barclays Exane BNP Paribas Outperform  Neutral
BTVCY Britvic Societe Generale Buy  Hold
BT BT Group Credit Suisse Outperform  Neutral
CNSL Consolidated Communications Holdings Drexel Hamilton Buy  Hold
CTTAY Continental AG Goldman Sachs Buy  Neutral
CS Credit Suisse Group JP Morgan Neutral  Underweight
DB Deutsche Bank JP Morgan Overweight  Neutral
ESYJY easyJet Cantor Fitzgerald Buy  Hold
EXPGY Experian Exane BNP Paribas Outperform  Neutral
FULL Full Circle Capital Maxim Group Buy  Hold
GKNLY GKN Goldman Sachs Buy  Neutral
ICAGY International Consolidated Airlines Group Goldman Sachs Buy  Neutral
IVZ Invesco Citigroup Buy  Neutral
KGFHY KingFisher Goldman Sachs Buy  Neutral
LGGNY Legal & General Group BofA Merrill Lynch Buy  Neutral
LYG Lloyds Banking Group BofA Merrill Lynch Neutral  Underperform
LYG Lloyds Banking Group JP Morgan Overweight  Neutral
LYB LyondellBasell Industries RBC Capital Markets Outperform  Sector Perform $100 $84
MTSI MACOM Technology Solutions Holdings BofA Merrill Lynch Buy  Neutral
MAN ManpowerGroup Credit Suisse Outperform  Neutral
MAN ManpowerGroup Avondale Market Outperform  Market Perform
MXIM Maxim Integrated Products BofA Merrill Lynch Buy  Neutral
NXPI NXP Semiconductors BofA Merrill Lynch Buy  Neutral
PCAR PACCAR JP Morgan Neutral  Underweight
PH Parker-Hannifin JP Morgan Neutral  Underweight
RMD ResMed Needham Hold  Underperform
RBS Royal Bank of Scotland Group JP Morgan Neutral  Underweight
RBS Royal Bank of Scotland Group Societe Generale Hold  Sell
RBS Royal Bank of Scotland Group Jefferies Buy  Hold
RBS Royal Bank of Scotland Group Exane BNP Paribas Outperform  Neutral
RBS Royal Bank of Scotland Group BofA Merrill Lynch Neutral  Underperform
ROYMF Royal Mail Goldman Sachs Buy  Neutral
TTM Tata Motors Credit Suisse Outperform  Neutral
TRI Thomson Reuters TD Securities Buy  Hold
UBS UBS Group AG JP Morgan Neutral  Underweight
Initiated
AGII Argo Group International Holdings JMP Securities Market Perform
AVGO Broadcom Morgan Stanley Overweight
CLSD Clearside Biomedical Wedbush Outperform $28
CLSD Clearside Biomedical Stifel Buy $13
NH NantHealth FBR Capital Outperform $18
NH NantHealth First Analysis Sec Overweight $18
NH NantHealth Jefferies Buy
PACB Pacific Biosciences of California CL King Buy
QRVO Qorvo Morgan Stanley Equal weight
SWKS Skyworks Solutions Morgan Stanley Underweight
SE Spectra Energy RBC Capital Markets Outperform $39

 

Key UK Corporate Snapshots Today

AstraZeneca Plc (AZN.L)  Announced that the European Commission (EC) has granted marketing authorisation for Zavicefta, a new combination antibiotic for the treatment of patients with serious Gram-negative bacterial infections requiring hospitalisation. The approval is based on data from an extensive clinical trial programme demonstrating the safety and efficacy of Zavicefta.

BCA Marketplace Plc (BCA.L)  Announced, in preliminary results for the 15 months ended 3 April 2016, that its reported revenue stood at £1.1 billion. Profit after tax was £7.7 million compared to loss after tax of £0.3 million reported for the 8 months ended 31 December 2014. The company’s diluted earnings per share was 1.2p, compared to loss per share of 5.5p. Moreover, the company announced the appointment with effect from today of David Lis as an independent Non-Executive Director to further strengthen its Board.

Benchmark Holdings Plc (BMK.L)  Announced, in its interim results for the six months ended 31 March 2016, that its reported revenue stood at £47.9 million, compared to £19.7 million in the preceding year. Net loss after tax was £11.3 million compared to loss after tax of £4.3 million. The company’s diluted loss per share was 3.09p, compared to loss per share of 5.96p.

Blue Prism Group Plc (PRSM.L)  Announced, in its unaudited interim results for the six months ended 30 April 2016, that its reported revenue stood at £4.02 million, compared to £3.32 million in the preceding period. Loss net of tax was £2.63 million compared to profit after tax of £0.06 million. The company’s basic and diluted loss per share was 0.07p, compared to 0.00p.

Bond International Software Plc (BDI.L)  Announced, in its preliminary results for the year ended 31 December 2015, that operating loss rose to £1.6 million from £1.3 million posted in the preceding year. The company’s loss before tax stood at £2.0 million, compared to a loss of £1.6 million reported in the previous year. The basic loss per share stood at 5.19p compared to earnings of 5.17p reported in the previous year. The company’s cash and cash equivalents stood at £2.4 million (2014: £3.7 million).

Cloudbuy Plc (CBUY.L)  Announced, in its final results for the year ended 31 December 2015, that its reported revenue stood at £1.7 million, compared to £2.1 million in the preceding year. Net loss after tax was £5.9 million compared to loss after tax of £4.5 million. The company’s diluted earnings per share was 4.8p, compared to 4.1p.

CloudTag Inc. (CTAG.L)  Announced, in its interim results for the six months ended 31 March 2016, that its net loss after tax was £2.2 million compared to loss after tax of £0.4 million. The company’s diluted loss per share was 1.00p, compared to loss per share of 0.31p.

Coal of Africa Limited (CZA.L)  Coal of Africa Limited and Universal Coal Plc provide the following update on CoAL’s recommended offer for the entire issued and to be issued share capital of Universal (the “Offer”). It was announced on 17 June 2016 that CoAL had extended the Offer Period of the Offer, such that the Closing Date is 15 July 2016. On 7 June 2016 the parties announced that pursuant to a Deed of Variation, CoAL and Universal had agreed to amend the terms of the Co-operation Agreement entered into in connection with the Offer such that the date by which the Effective Date must have occurred be extended until 24 June 2016. While the Co-Operation Agreement and the mutual obligations contained therein have therefore expired, the Offer remains open for acceptance until 15 July 2016.

Cohort Plc (CHRT.L)  Announced, in its final results for the year ended 30 April 2016, that its reported revenue stood at £112.6 million, compared to £99.9 million in the preceding year. Profit after tax was £5.4 million compared to £5.2 million. The company’s diluted earnings per share was 18.78p, compared to 13.74p.

Dignity Plc (DTY.L)  Announced the completion of the acquisition of the three freehold crematoria locations from Funeral Services Limited. A further two sites remain on track for completion at a later stage as previously indicated, pending consent of the relevant Local Authority and transfer of the trade and assets of the location to a new entity. All five crematoria are located in markets not served by existing Dignity crematoria.

Fastjet Plc (FJET.L)  Announced, in its trading update for the current trading and the first half of the 2016 financial year, that the trading environment in which the company operates remains challenging. Passenger numbers of 390,000 are forecast for the first half ending 30 June 2016 but load factors have declined to 47% reflecting the increase in available capacity in the past 12 months. Although the ongoing cost reduction programme and the recent reduction in routes and fleet size are yielding material benefits the Group continues to be cash flow negative. Moreover, the company needs to raise further finance to provide essential working capital and also to effect the necessary changes to its operations, reduce costs further and pursue revenue generating initiatives to grow the business. The Board believes that with a new CEO, who has a proven track record of successfully operating a low cost carrier in Africa, combined with a more pragmatic approach to operating the business, a much reduced cost base and management positioned in proximity to our markets and customers the Group has a viable and attractive future.

Golden Saint Resources Limited (GSR.L)  Announced, in its audited results for the year ended 31 December 2015, that revenues fell to $26,000 from $52,000 posted in the previous year. The company’s net loss fell to $2.1 million from $3.7 million reported in the previous year. The basic loss per share stood at 0.16c compared to loss of 0.78c reported in the previous year. The company’s cash and cash equivalents stood at $13,000 (2014: $856,000).

HML Holdings Plc (HMLH.L)  Announced, in its final results for the year ended 31 March 2016, that revenues rose to £18.6 million from £17.2 million recorded in the previous year. Profit after tax widened to £1.0 million from £0.9 million. The directors proposed a dividend of 0.33p per share in relation to the current year (2015: 0.30p per share).

iEnergizer Ltd (IBPO.L)  Announced, in its full year results for the year ended 31 March 2016, that income from operations stood at $141.72 million, compared to $140.84 million in the same period last year. Operating profit stood at $28.95 million, compared to $18.40 million. Profit after tax was $16.91 million, compared to $5.61 million. Basic and diluted earnings per share stood at 0.10c, compared to 0.04c.

Imperial Innovations Group Plc (IVO.L)  Announced that its portfolio company Storm Therapeutics (or the ‘Company’) has completed a £12.0 million Series A fundraising which will be used for the identification of small molecules that target RNA-modifying enzymes as the basis for the development of new cancer therapies. As a result of this new investment, Innovations will hold a 22.3% stake in the issued share capital of the Company. Storm Therapeutics is a drug discovery and development business focused on the identification and development of small molecules that target RNA-modifying enzymes.

Interserve Plc (IRV.L)  Announced that it has been awarded a facilities management services contract worth £60 million over its initial three year term with commercial and residential property services company JLL. Interserve will provide integrated facilities services at 18 shopping centres managed by JLL across the UK. Services will be delivered using Interserve’s LEAN model, which focuses on improving service delivery and maximising cost savings by implementing new innovations across the business.

James Cropper Plc (CRPR.L)  Announced, in its Preliminary Audited Results for the 53 weeks ended 2 April 2016, that revenue stood at £87.9 million, compared to £83.1 million in the same period last year. Operating profit before interest stood at £6.26 million, compared to £3.90 million. Diluted earnings per share stood at 31.8p, compared to 20.1p. Basic earnings per share stood at 32.6p, compared to 20.8p.

Keras Resources Plc (KRS.L)  Announced, in its interim results for the six months ended 31 March 2016, that operating loss widened to £0.676 million from £0.568 million posted in the same period preceding year. The company’s loss before tax stood at £1.1 million, compared to a loss of £0.659 million reported in the previous year. The basic and diluted loss per share stood at 0.076p compared to loss of 0.065p reported in the previous year. The company’s cash and cash equivalents stood at £0.155 million (2015: £0.452 million).

Legal & General Group Plc (LGEN.L)  Announced the appointment of Sir John Kingman as Group Chairman of Legal & General. The appointment has been approved by both Financial Regulators, the Prudential Regulation Authority and Financial Conduct Authority.

Next Fifteen Communications Plc (NFC.L)  Announced, in its trading statement, that the new financial year started on a positive note as the first four months of the period was driven by strong organic revenue growth from its North American businesses. The period has saw continued revenue growth while margins improved in the UK and Asia as the company worked on to simplify its non-US operations progresses. It also saw an improvement in its business in EMEA.

Nighthawk Energy Plc (HAWK.L)  Announced, in its production update, that its production continues to remain strong while its month on month decline in 2016 was less than that experienced in 2015. This was due to continued enhanced recovery projects implemented in the field and better than expected recoveries due to a natural water drive in the Arikaree Creek Field.

Northgate Plc (NTG.L)  Announced, in its final results for the year ended 30 April 2016, that its reported revenue stood at £618.29 million, compared to £614.26 million in the preceding year. Profit after tax was £65.35 million compared to £67.94 million. The company’s diluted earnings per share was 48.3p, compared to 50.0p.

Old Mutual Plc (OML.L)  Announced that they have started executing the managed separation of the Group into its four constituent businesses: Old Mutual Emerging Markets, Nedbank Group, Old Mutual Wealth and OM Asset Management. It further added that increased market volatility following the referendum decision to leave the EU does not affect its strategy, although it may impact the performance of the underlying businesses. The expected headwinds of weaker and more volatile foreign exchange and equity markets have materialized. However, the average value of the rand year-to-date 2016 has decreased by 22% as compared to the first half of 2015. It remains confident that the managed separation process will lead to the creation of shareholder value, and strong businesses for our customers, staff and other stakeholders. It will also hold a General Meeting immediately after today’s AGM, to consider a revised Directors’ Remuneration Policy and adoption of a new long-term incentive plan

One Media iP Group Plc (OMIP.L)  Announced that it has entered into an exclusive long term digital exploitation license agreement with HiBrow Production’s TV & music catalogue for an Advance of £21,000 ($26,000 USD) recoupable against future royalties. One Media will further exploit the Hibrow content primarily via its digital audio and video routes to market such as YouTube, Amazon and its 600 digital stores such as iTunes, Spotify, Deezer and Google Play.

Pathfinder Minerals Plc (PFP.L)  Announced, in its final results for the year ended 31 December 2015, that it reported nil revenues during the period. Loss after tax widened to £1.09 million from £1.06 million. Diluted loss per share stood at 1.05p.

President Energy Plc (PPC.L)  Announced the following update on Argentina operations and revised loan agreements that the President has now engaged drilling contractors for a 2016 three horizontal well programme due to commence by end July. Objective of the drilling campaign is to increase sustainable production above 1,000 bopd. Revised funding arrangements with IYA Global Limited provides the company with the funding to undertake the 2016 drilling campaign and increased working capital headroom. Loan Restructuring provides increased funding of $20.0 million comprising an additional $5.0 million to the company’s existing $10.0 million loan facility and $1.0 million to the existing convertible loan of $4.0 million. The maturity of both the loan facility and the convertible loan will be extended by two years to 30 June 2019 with the same interest rates and payment terms as the existing loan agreements.

Red24 Plc (REDT.L)  Announced, in its final results for the year ended 31 March 2016, that revenues rose to £6.6 million from £5.9 million recorded in the previous year. Profit after tax narrowed to £0.5 million from £0.9 million. The board increased the final dividend by 11% to 0.30p per share (2015: 0.27p).

Redrow Plc (RDW.L)  Announced, in its trading statement for the 2016 financial year, that total turnover for the year jumped by 20% to £1.38 billion, from £1.15 billion in the previous year. The number of homes legally completed increased by 17% to 4,716 (2015: 4,022), while the private completions also climbed by 12% to 3,882 (2015: 3,451). The Average Selling Price of private homes rose to £328,500 from £297,300 in the previous year. The new homes market was strong throughout the period while the mortgage market kept on improving. The Private Order Book at the end of June 2016 rose by 50% to £807 million, compared to the same period last year. The company stated that the pre-tax profit will be higher than the analysts’ estimates of £240 million.

Rolls-Royce Holdings Plc (RR..L)  Announced that it will be presenting its Half Year Results on 28 July 2016. As a result, ahead of the start of its close period from 1 July 2016 the company is confirming that there has been no change to its outlook; overall trading in the first five months of the year has been broadly in line with expectations and the outlook for the year as a whole is unchanged.

SafeCharge International Group Limited (SCH.L)  Announced, in its trading update for the first six months of 2016, that the Group has enjoyed strong trading in the first half. As a result, Adjusted EBITDA* for the period will be comfortably ahead of $16 million and the Directors are very confident of the outcome for the full year. The Directors confirm that the US dollar is the Group’s functional and most significant currency in terms of contribution to revenues and that nearly 80% of the Group’s cash is held in US dollars with sterling balances representing less than 5%.

Shawbrook Group Plc (SHAW.L)  Announced that it has accepted the resignation of Tom Wood. He will leave the company on 30th June and a search for his successor will now begin.

Sutton Harbour Holdings Plc (SUH.L)  Announced, in its preliminary results for the year ended 31 March 2016, that revenues fell to £6.5 million from £6.9 million posted in the last year. The company’s profit before tax stood at £1.6 million, compared to a profit of £0.861 million reported in the previous year. The basic earnings per share stood at 1.55p compared to earnings of 0.68p reported in the previous year. The Board did not recommend any dividend for the period. The company’s cash and cash equivalents stood at £0.686 million (2015: £0.239 million).

UK Commercial Property Trust Ltd (UKCM.L)  Announced that on 24 June 2016 it completed the sale of Dolphin House, an office in Sunbury-on-Thames, having also completed the sale, earlier in the month, of 6 Arlington Street, in London’s St James’s. The sales were completed in two separate transactions for a total consideration of £45.6 million, which together represented an aggregate 14% premium to 31 March 2016 market value.

UK Oil & Gas Investments Plc (UKOG.L)  Announced, in its unaudited results for the six-month period ended 31 March 2016, that turnover stood at £0.07 million, compared to £0.20 million in the same period last year. Operating loss stood at £1.26 million, compared to £0.42 million. Loss after tax was £1.26 million, compared to £0.38 million. Basic loss per share stood at 0.06p, compared to 0.02p.

ULS Technology Plc (ULS.L)  Announced, in its full year results for the year ended 31 March 2016, that revenue stood at £20.66 million, compared to £16.14 million in the same period last year. Operating profit stood at £3.38 million, compared to £1.61 million. Profit after tax was £2.38 million, compared to £1.10 million. Basic earnings per share stood at £0.0367, compared to £0.0179. Diluted loss per share was £0.0351, compared to £0.0175.

Urals Energy Public Company Limited (UEN.L)  Announced, in its full year results for the year ended 31 December 2015, that net revenues after excise, export duties and VAT stood at £27.21 million, compared to £44.48 million in the same period last year. Operating profit stood at £3.33 million, compared to £8.10 million. Loss after tax was £4.06 million, compared to £13.70 million.

Wood Group (John) Plc (WG..L)  Announced that it has been awarded a multimillion dollar contract to provide detailed engineering and design, and procurement services to South Atlantic Holding for the development of the Peregrino field wellhead platform C, offshore Brazil. The company’s Mustang will perform the work for Kiewit Offshore Services (KOS), a leading fabricator for the oil & gas industry. The company’s Mustang completed the front-end engineering and design for wellhead platform C in 2015 and previously designed wellhead platforms A and B.

Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.