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Broker Upgrades and Downgrades & Key UK Corporate Snapshots 22 April 2016

UK Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
AAL Anglo American Plc Deutsche Bank Hold Hold 515 690
ACA Acacia Mining Plc Citigroup Neutral Neutral 304 340
BDEV Barratt Developments Plc Liberum Capital Sell Hold
PSN Persimmon Plc Liberum Capital Sell Hold
S32 South32 Ltd Deutsche Bank Hold Hold 80 81
SBRY J Sainsbury Plc Deutsche Bank Hold Buy 265 325
STHR SThree Plc Credit Suisse Neutral Outperform 350 400
ZPLA Zoopla Property Group Plc Deutsche Bank Hold Hold 240 260
Downgrades
BARC Barclays Plc Deutsche Bank Hold Hold 180 178
COB Cobham Plc Berenberg Sell Sell 245 200
LLOY Lloyds Banking Group Plc Deutsche Bank Buy Buy 83 82
MRW WM Morrison Supermarkets Plc Deutsche Bank Hold Sell 175 175
RIO Rio Tinto Plc Morgans Add Hold
VCT Victrex Plc Exane BNP Paribas Outperform Neutral
WTB Whitbread Plc Berenberg Buy Buy 6000 5000
Initiate/Neutral/Unchanged
ABF Associated British Foods Plc Berenberg Hold Hold 3450 3450
ACA Acacia Mining Plc Deutsche Bank Buy Buy 340 340
AFC AFC Energy Plc Cantor Fitzgerald Buy 77
AHT Ashtead Group Plc Peel Hunt Buy Buy 1450 1450
AHT Ashtead Group Plc Deutsche Bank Sell Sell 660 660
ALD Allied Gold Mining Plc Deutsche Bank Hold Hold
BDEV Barratt Developments Plc Canaccord Genuity Hold Hold 630 630
BKG Berkeley Group Holdings Plc Canaccord Genuity Buy Buy 4180 4180
BLT BHP Billiton Plc Citigroup Neutral Neutral
BVS Bovis Homes Group Plc Canaccord Genuity Buy Buy 1150 1150
BWY Bellway Plc Canaccord Genuity Buy Buy 3430 3430
CRH CRH Plc Deutsche Bank Hold Hold 1993 1993
CRST Crest Nicholson Holdings Plc Canaccord Genuity Buy Buy 670 670
EZJ easyJet Plc Credit Suisse Outperform Outperform 2137 2137
GFTU Grafton Group Plc Canaccord Genuity Buy Buy 795 795
HSBA HSBC Holdings Plc Deutsche Bank Hold Hold
HWDN Howden Joinery Group Plc Canaccord Genuity Hold Hold 540 540
LAD Ladbrokes Plc Deutsche Bank Hold Hold 136 136
MSLH Marshalls Plc Canaccord Genuity Buy Buy 380 380
NTG Northgate Plc Citigroup Buy 600
PSN Persimmon Plc Canaccord Genuity Hold Hold 2170 2170
RBS Royal Bank of Scotland Group Plc Deutsche Bank Hold Hold
RDW Redrow Plc Canaccord Genuity Buy Buy 610 610
SHI SIG Plc Canaccord Genuity Buy Buy 160 160
SKY Sky Plc Deutsche Bank Buy Buy 1500 1500
STAN Standard Chartered Plc Deutsche Bank Hold Hold
TEF Telford Homes Plc Canaccord Genuity Hold Hold 400 400
TPK Travis Perkins Plc Canaccord Genuity Buy Buy 2310 2310
TSCO Tesco Plc Deutsche Bank Hold Hold
VOD Vodafone Group Plc Morgan Stanley Overweight Overweight 280 280
WOS Wolseley Plc Canaccord Genuity Buy Buy 4400 4400

 

US Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
ABB ABB Ltd Societe Generale Sell  Hold
CVCY Central Valley Community Bancorp Keefe, Bruyette & Woods Market Perform  Outperform
CMA Comerica BofA Merrill Lynch Underperform  Neutral
IBN ICICI Bank Credit Suisse Neutral  Outperform
PM Philip Morris International Societe Generale Sell  Hold
OKSB Southwest Bancorp Hovde Group Market Perform  Outperform $17 $17
Downgrades
AFL AFLAC Raymond James Outperform  Market Perform
AMTG Apollo Residential Mortgage JP Morgan Overweight  Neutral
CP Canadian Pacific Railway Desjardins Buy  Hold
CTLT Catalent Morgan Stanley Overweight  Equal weight
CHKP Check Point Software Technologies Raymond James Outperform  Market Perform
CIE Cobalt International Energy Tudor Pickering Buy  Hold
CTBI Community Trust Bancorp Sandler O’Neill Buy  Hold
COP ConocoPhillips Jefferies Hold  Underperform
CMI Cummins Robert W. Baird Neutral  Underperform $96 $110
EOG EOG Resources Deutsche Bank Buy  Hold $85 $83
ERIC Ericsson BofA Merrill Lynch Buy  Neutral
EXPD Expeditors International of Washington BB&T Capital Markets Buy  Hold
FFIV F5 Networks Raymond James Outperform  Market Perform
FMBI First Midwest Bancorp Sandler O’Neill Buy  Hold
FMC FMC Corp Credit Suisse Outperform  Neutral $45 $43
FNV Franco-Nevada TD Securities Buy  Hold
FUL HB Fuller Deutsche Bank Buy  Hold $44 $47
IMPV Imperva Morgan Stanley Equal weight Underweight
INOV Inovalon Holdings Robert W. Baird Outperform  Neutral $22 $21
KELYA Kelly Services Northcoast Buy  Neutral
KNX Knight Transportation Stifel Buy  Hold
KNX Knight Transportation Raymond James Strong Buy  Outperform
LVS Las Vegas Sands JP Morgan Overweight  Neutral
LCUT Lifetime Brands Sidoti Buy  Neutral
MTB M&T Bank Robert W. Baird Neutral  Underperform $125 $115
MTB M&T Bank Portales Partners Outperform  Sector Perform
MINI Mobile Mini Sun Trust Rbsn Humphrey Buy  Neutral
NGVC Natural Grocers by Vitamin Cottage RBC Capital Markets Outperform  Sector Perform $29 $16
OMI Owens & Minor Robert W. Baird Neutral  Underperform $36 $32
POFCF Petrofac Jefferies Buy  Hold
QCOM QUALCOMM Rosenblatt Buy  Neutral $57 $57
REPYY Repsol SA Jefferies Hold  Underperform
ROK Rockwell Automation Gabelli & Co Buy  Hold
SM SM Energy Guggenheim Buy  Neutral
SNE Sony JP Morgan Overweight  Neutral
OKSB Southwest Bancorp Raymond James Outperform  Market Perform
TCK Teck Resources FBR Capital Outperform  Market Perform
TBI TrueBlue Robert W. Baird Outperform  Neutral $26 $23
USB US Bancorp Robert W. Baird Outperform  Neutral $45 $42
UMPQ Umpqua Holdings Piper Jaffray Neutral  Underweight
UBNK United Financial Bancorp Piper Jaffray Overweight  Neutral
UHS Universal Health Services Standpoint Research Buy  Hold
WERN Werner Enterprises Stifel Buy  Hold
WIT Wipro Citigroup Neutral  Sell
Initiated
ADC Agree Realty Jefferies Buy
AMOT Allied Motion Technologies Craig Hallum Buy
ENDP Endo International JMP Securities Market Outperform
GNC GNC Holdings Wedbush Outperform $40
IIVI II-VI Sidoti Buy
INTU Intuit Credit Suisse Neutral $100
MPLX MPLX LP Raymond James Market Perform
PBFX PBF Logistics Raymond James Outperform
PFSW PFSweb Northland Capital Outperform
PSXP Phillips 66 Partners Raymond James Outperform
ROIC Retail Opportunity Investments JP Morgan Neutral $21
USCR US Concrete BB&T Capital Markets Buy $80
VLP Valero Energy Partners Raymond James Outperform
VSI Vitamin Shoppe Wedbush Outperform $39
WNRL Western Refining Logistics Raymond James Strong Buy

 

Key UK Corporate Snapshots Today

African Potash Limited (ESG.L)  Announced, in its operational update, that on 21 April 2016, the company signed a participation agreement with Safyr Commodities (“Safyr”) which in turn has secured conditional sales agreements with one of Zambia’s leading fertiliser distributors, Nyiombo Investments Ltd (“Nyiombo”), for 50,000Mt in aggregate, of urea and NPK (the “Offtake”). Under the participation agreement, the company will be paid a fee of 25% of the Net Income received by Safyr, up to a maximum of $4 million. Net Income is defined as the net margin received by Safyr under the Offtake before deducting any associating financing costs. Delivery is contracted to take place by 31 July 2016, with any fee being paid to the company being subject to Safyr and Nyiombo successfully concluding delivery and payment in accordance with the sales agreement. Safyr is jointly owned by Mr Neverl Kambasha and the Safyr Group in Mauritius. The drought currently affecting much of southern Africa has had a marked impact on the fertiliser market and in particular the demand for urea in Zimbabwe. The agreement with Windmill (Pvt) Ltd originally announced on 11 December 2015 has been terminated. The company’s supplier, Beryl Holdings Pty Limited, has withdrawn the inventory held on consignment. No further sales or liabilities are expected to arise following the termination of the agreement. The company continues to build a promising pipeline of supply opportunities within its relationship with COMESA. The company will make further announcements when appropriate.

Andes Energia Plc (AEN.L)  Announced, its production update, that the Group production for February 2016 rose to 3,538 bpd from 3,487 bpd in January 2016. In Argentina, the average production at its Chachahuen, Chanares Herrados, Puesto Pozo Cercado, Vega Grande, La Brea and El Manzano licenses was seen at 2,316 bpd net to the company. Meanwhile, in Columbia, average production at the Mana and Altair license was 1,222 boepd (61% Oil) net to Interoil, in which the company holds a 26% interest.

Atalaya Mining Plc (ATYM.L)  Announced, in its audited results for the year ended 31 December 2015, that gross loss stood at €1.77 million, compared to a loss of €5.95 million in the same period last year. Operating loss stood at €6.11 million, compared to a loss of €11.55 million. Loss after tax was €15.01 million, compared to a loss of €11.25 million. Basic and diluted loss per share stood at 17.9c, compared to a loss of 25.5c.

Be Heard Group Plc (BHRD.L)  Announced the placing of new ordinary shares to raise up to £10.0 million (the “Placing”) with new and existing investors to support the proposed acquisition of design, build and user experience (“UX”) agency MMT Limited (“MMT Digital”) (the “Acquisition”) previously announced on 14 March 2016. The Placing and Acquisition (together, the “Transaction”) are conditional upon shareholder approval, and accordingly the company has today published and sent to all holders of ordinary shares in Be Heard a combined admission document and circular (the “Admission Document”) convening a general meeting (the “General Meeting”) of the company which is to be held at the offices of Macfarlanes LLP, 20 Cursitor Street, London EC4A 1LT at 10.00 am on 9 May 2016. Following publication of the Admission Document, the company has requested an immediate lifting of suspension of trading in its shares, which is expected to occur at 7.30 am, today, 22 April 2016.

Bowleven Plc (BLVN.L)  Announced that it has been awarded a one year extension to the existing Bomono exploration licence, onshore Cameroon, pending the final award of an Exploitation Authorisation (EA). The Bomono Exploitation Authorisation Application (BEAA) was submitted to the Cameroon authorities prior to the formal expiry of the exploration licence on 12 December 2015 to enable the progression of development activities. The interim extension award ensures that the Group’s interest in the acreage is maintained while dialogue is ongoing with the Cameroon authorities on the BEAA.

Braime (T.F.& J.H.) (Hldgs) Plc (BMTO.L)  Announced, in its annual results for the year ended 31 December 2015, that revenue stood at £26.47 million, compared to £24.29 million in the same period last year. Operating profit stood at £0.90 million, compared to £1.24 million. Profit for the period was £1.54 million, compared to £0.78 million. Basic and diluted earnings per share stood at 107.05p, compared to 54.31p. An interim dividend of 6.20p per Ordinary and ‘A’ Ordinary share will be paid on 12th May 2016.

CareTech Holdings Plc (CTH.L)  Announced, its pre-close trading update for the half year ended 31 March 2016, that the trading was in line with its expectations, mainly driven by the strategic initiatives undertaken over recent years. The Group’s net capacity at the half year was 2,292 places (2015: 2,116 places). Occupancy levels in the mature estate were unchanged at 93% and the blended occupancy also was unchanged at approximately 86%, compared to the levels as at 30 September 2015. The Group expects to achieve further growth reconfiguring services and extending facilities in partnership with local authorities and through organic developments and bolt on acquisitions.

Cerillion Plc (CER.L)  Announced, in its trading update for the six months ended 31 March 2016, that it expects the trading to be in line with the expectations. It expects the revenues to grow by 11% to £6.9 million and EBITDA to jump by 21% to £1.1 million, compared with the same period in the previous financial year.

ECO Animal Health Group Plc (EAH.L)  Announced that its subsidiary ECO Animal Health Limited (ECO) has received a positive opinion from the Committee for Medicinal Products for Veterinary Use (CVMP) of the European Medicines Agency (EMA) for the use of Aivlosin 625 mg/g water soluble granules in chickens laying eggs for human consumption. This positive opinion will allow for the medication of drinking water with AivlosinR for the treatment of respiratory infection caused by Mycoplasma gallisepticum in poultry laying eggs for human consumption with a zero day drug withdrawal period for eggs. ECO is now able to accelerate the submission of the Aivlosin regulatory files for the treatment of layers in its key global markets.

eServGlobal Limited (ESG.L)  Announced that it has won a significant contract to supply its PayMobile software. This follows the announcement of a large contract made to the market on 6 April 2016. The project includes the provision of electronic recharge, voucher management and IVR (Interactive Voice Response) solutions for a mobile network operator. The contract is valued at €6.0 million over five years, with approximately €2.5 million to be recognised within the current financial year. The company maintains its guidance for FY16 which is to achieve a small EBITDA surplus for the core business with some revenue growth and a substantially lower cost base.

Eurasia Mining Plc (EUA.L)  Announced positive intermediary drilling results from the 2015/16 drilling programme at the Monchetundra Project on the Kola Peninsula, northwest Russia. Core drilling and shallow geochemical sampling of glacial till commenced on the licence in August 2015 and focussed on the West Nittis and Loipishnune Areas. The shallow geochemical drilling program is 100% complete with 20% of holes already assayed and the remainder to be processed and announced in due course. Core logging and assaying is still in progress on 12 of a total of 22 core drilling holes. The positive findings here reported should therefore be regarded as intermediary. Total of 4,163.9m of core drilling completed in 2015/2016 to date. Infill drilling at West Nittis confirms continuous mineralisation and should allow definition of a C1 Reserve (see below). 339 drill core assay results have been received from the internationally accredited Irgiridmet laboratory facility in Irkutsk. 542 geochemical samples processed.

FastForward Innovations Limited (FFWD.L)  Announced that its investee company, Diabetic Boot Company Limited (DBC), is seeking to raise up to £3.5 million from its shareholders by issuing new ordinary shares at a price of £23 per share. New shareholders will also receive warrants in the ratio of one warrant for each two new shares issued, the warrant is exercisable at £26.45 per share within five years. The company is not intending to invest in this issue. The company also notes that, on 20th April 2016, Regent Pacific Group Limited announced that it has entered into a binding Term Sheet with DBC in respect of a conditional subscription for up to 130,434 new DBC shares (and 65,217 Warrants) for an aggregate consideration of up to £2,999,982. These funds are due to be invested by Regent in three conditional tranches; the Company understands the conditions in relation to the first tranche have been met thereby warranting the issue of such new DBC shares.

Hammerson Plc (HMSO.L)  Announced that it has signed a new £420 million unsecured Revolving Credit Facility (RCF) at an initial margin of 90 basis points with a syndicate of eight international banks. This new facility will refinance the existing £150 million RCF which was to mature in April 2017 with a margin of 150 basis points. The existing £150 million facility will be cancelled resulting in a net increase of £270 million of undrawn facilities. This increase in liquidity will be used to partially refinance the €1.5 billion RCF used for recent investments in Ireland and Birmingham.

Herencia Resources Plc (HER.L)  Announced that further to the announcement released on 5 April 2016 and 15 April 2016, the company confirms that the Australian Special Opportunity Fund and Oriental Darius Co. Ltd have advanced to the company, $100,000. As previously stated, the directors believe that the funds from Part 2 of Tranche 1 will support the company’s working capital requirements until early May 2016. There can be no guarantee that the Company will be able to continue to trade after that time. The Next Transaction, announced to the market on 3 February 2016, is well advanced. Pursuant to an agreement with Next, the company has agreed subject, inter alia, to shareholder approval and completion of satisfactory due diligence by Next to dispose of 100% of the company’s Picachos project for up to $5.125 million, over 16 months. The due diligence is progressing well, and the first payment of $2million is expected by 30 April 2016 if the transaction is to proceed, however, at this stage, there can be no guarantee that the transaction will proceed.

Hiscox Limited (HSX.L)  Announced that Hamayou Akbar (‘Aki’) Hussain will join the Hiscox Group as Group Chief Financial Officer.

hVIVO Plc (HVO.L)  Announced a joint venture investment with the SEEK Group (“SEEK”) to develop vaccines against influenza (flu) and mosquito-borne diseases, such as Zika and other flaviviruses. The joint venture investment in a new company Imutex Limited (“Imutex”) strengthens the company’s commercial flu portfolio and expands it into the adjacent therapeutic area of mosquito-borne diseases, with immediate focus on Zika. The company expects to begin Zika vaccine Phase I clinical study at the National Institutes of Health (NIH) in Bethesda, Md., later this year.

Moneysupermarket.com Group Plc (MONY.L)  Announced the appointment of Barclays Bank PLC as joint corporate broker to work alongside Credit Suisse International, with immediate effect.

P2P Global Investments Plc (P2P.L)  Announced, in its Annual Financial Report for the year ended to 31 December 2015, that revenue stood at £38.37 million, compared to £5.31 million in the same period last year. Net profit on ordinary activities before taxation stood at £26.07 million, compared to £3.84 million. Basic and diluted profit per share stood at 47.62p, compared to 19.22p.

PME African Infrastructure Opportunities Plc (PMEA.L)  Announced, in its final year results for the year ended 31 December 2015, that operating loss stood at $2.08 million, compared to $16.63 million. Loss after tax was $2.10 million, compared to £16.65 million. Basic and diluted loss per share stood at 2.84c, compared to 21.69c.

Providence Resources Plc (PVR.L)  Announced, in its technical update on its Exploration Collaboration Project with Schlumberger, that the multi-domain analysis confirmed the 3D seismic response from the Druid and Drombeg prospects to be consistent with the presence of two large vertically stacked stratigraphically trapped oil accumulations. The total cumulative in-place un-risked prospective resources were seen at 5.095 Billion Barrels of Oil (BBO) (PMean), out of which Druid prospect showed 3.180 BBO (PMean) while Drombeg showed 1.915 BBO (PMean). The latest internal internal cost for a dual objective Druid/Drombeg well is estimated to be around $85 million compared to the $200 million Dunquin North exploration well, which was drilled to a similar depth in 2013.

Qatar Investment Fund Plc (QIF.L)  Announced, in its Q1 2016 Investment Report for the period 1 January 2016 to 31 March 2016, indicated that the net asset value (NAV) per share net of dividends fell 1.4% while the Qatar Exchange Index (QE) fell 0.5%. At 31 March 2016, QIF had 21 holdings, 18 in Qatar and 3 in UAE. In the previous period, QIF had 17 holdings, all in Qatar. QIF remains overweight in the Qatari banking sector (including financial services) at 43.1% of NAV (Q4 2015: 43.2%) compared to a QE weighting of 38.8%. Industrials remain QIF’s second largest exposure at 27.6% (Q4 2015: 28.0%), mainly in Industries Qatar (11.2% of NAV). The long term growth prospects of the Qatari economy remain positive, underpinned by infrastructure spending of c.US$200 billion ahead of the 2022 FIFA World Cup, in line with the Qatar National Vision (QNV) 2030.

RM2 International SA (RM2.L)  Announced the appointment – effective immediately – of Kevin Mazula as Group Chief Operating Officer. His initial area of focus will be to oversee the manufacturing relationship with Zhenshi Group Holding Company, Ltd. of China that was announced on 6th April 2016.

Sirius Petroleum Plc (SRSP.L)  Announced, in its operation update, that it has engaged independent petroleum consultants, Rockflow Resources Limited, to produce a Competent Person’s Report on the Ororo Field located in OML 95, in shallow waters offshore Nigeria, to assist the Company in its discussions with potential funding providers. In addition to the increased range of oil volumetrics at Ororo, Rockflow has also estimated significant volumes of gas of 99.34 – 133.95 Bcf gas, approximately 17.13 – 23.09 (Million Barrels of Oil Equivalent) gross Mid to High Case respectively. In accordance with the Department of Petroleum Resources (“DPR”) guidelines and regulations, Sirius, together with its partners, Guarantee Petroleum and Owena Oil & Gas, have filed a few permits and agreements as part of its development activities in anticipation of the rig mobilisation for the Ororo field.

UBM Plc (UBM.L)  Announced the acquisition of Business Journals Inc (BJI), a producer of fashion trade shows in New York and Las Vegas, for $69 million in cash. This transaction is very much in line with the company’s ‘Events First’, strategy. It adds to the company’s presence in North America and also in the fashion sector, both of which were already strong following the company’s acquisition of Advanstar at the end of 2014.

Ultra Electronics Holdings Plc (ULE.L)  Announced that that its Sonar Systems business, based in Greenford, Middlesex, has been awarded a £9.5 million extension to contract for the supply of sonobuoys for the Royal Navy’s Merlin Maritime Patrol Helicopter which will be executed throughout 2017.

Wolf Minerals Limited (WLFE.L)  Announced that the shareholders of the company have approved the £25 million standby subscription facility, with Resource Capital Fund VI L.P. Under the terms of the facility, RCF VI, an associate of current major shareholder Resource Capital Fund V L.P., will subscribe for ordinary shares in the company for up to a maximum amount of £25 million (approximately A$46 million) at 9.19p (approximately A$0.17) per share.

Zoltav Resources Inc (ZOL.L)  Announced, in its final results for the year ended 31 December 2015, that revenue stood at $28.14 million, compared to $20.01 million in the same period last year. Operating profit stood at $1.09 million, compared to $27.42 million. Loss after tax was $4.03 million, compared to $21.71 million. Diluted loss per share stood at 2.80c, compared to 20.19c.

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