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Broker Upgrades and Downgrades & Key UK Corporate Snapshots 25 April 2016

UK Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
BLT BHP Billiton Plc RBC Capital Markets Sector Performer Sector Performer 800 900
EXPN Experian Plc Jefferies International Buy Buy 1340 1500
TED Ted Baker Plc Jefferies International Hold Buy 3400 3000
TLW Tullow Oil Plc RBC Capital Markets Outperform Outperform 260 290
Downgrades
ANTO Antofagasta Plc Credit Suisse Underperform Underperform 380 360
RTN Restaurant Group Plc Jefferies International Buy Buy 560 500
WG. John Wood Group Plc JP Morgan Cazenove Underweight Underweight 564 545
Initiate/Neutral/Unchanged
AAL Anglo American Plc Deutsche Bank Hold Hold
AGK Aggreko Plc Barclays Capital Overweight Overweight
AHT Ashtead Group Plc Barclays Capital Overweight Overweight 1135 1135
AHT Ashtead Group Plc Deutsche Bank Sell Sell 660 660
AMFW Amec Foster Wheeler Plc JP Morgan Cazenove Overweight Overweight
ARM ARM Holdings Plc Credit Suisse Outperform Outperform 1175 1175
AZN AstraZeneca Plc Barclays Capital Equal weight Equal weight 5000 5000
BDEV Barratt Developments Plc Deutsche Bank Buy Buy
BLT BHP Billiton Plc Deutsche Bank Hold Hold
CRH CRH Plc Deutsche Bank Hold Hold 1993 1993
DC. Dixons Carphone Plc Barclays Capital Overweight Overweight 530 530
GSK GlaxoSmithKline Plc Barclays Capital Overweight Overweight 1650 1650
GSK GlaxoSmithKline Plc Citigroup Buy Buy 1550 1550
GSK GlaxoSmithKline Plc JP Morgan Cazenove Neutral Neutral
HSBA HSBC Holdings Plc Berenberg Buy Buy 600 600
ISAT Inmarsat Plc Jefferies International Buy Buy 1245 1245
MGAM Morgan Advanced Materials Plc HSBC Buy 270
MRW WM Morrison Supermarkets Plc Jefferies International Buy Buy 210 210
RIO Rio Tinto Plc Deutsche Bank Buy Buy
SBRY J Sainsbury Plc Jefferies International Hold Hold 280 280
SBRY J Sainsbury Plc Barclays Capital Equal weight Equal weight 270 270
SN. Smith & Nephew Plc Berenberg Buy Buy 1300 1300
SN. Smith & Nephew Plc Deutsche Bank Hold Hold 1150 1150
TLW Tullow Oil Plc Barclays Capital Overweight Overweight 280 280
TPK Travis Perkins Plc Barclays Capital Equal weight Equal weight 1950 1950
TPK Travis Perkins Plc Deutsche Bank Buy Buy
TW. Taylor Wimpey Plc Deutsche Bank Buy Buy
VOD Vodafone Group Plc Citigroup Buy Buy 260 260
WINE Majestic Wine Plc Peel Hunt Buy 540

 

US Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
AMD Advanced Micro Devices Exane BNP Paribas Underperform  Neutral
AMD Advanced Micro Devices Craig Hallum Hold  Buy
ADM Archer-Daniels-Midland JP Morgan Underweight  Neutral
BANC Banc of California Keefe, Bruyette & Woods Market Perform  Outperform
BAS Basic Energy Services Raymond James Underperform  Market Perform
CHU China Unicom Hong Kong Nomura Reduce  Buy
CHT Chunghwa Telecom HSBC Securities Reduce  Hold
EGP EastGroup Properties Stifel Hold  Buy $68 $68
GLOG GasLog Jefferies Hold  Buy
GLNG Golar LNG Jefferies Hold  Buy
NGL NGL Energy Partners BofA Merrill Lynch Underperform  Neutral
NSC Norfolk Southern Credit Suisse Neutral  Outperform
NSC Norfolk Southern UBS Neutral  Buy $84 $102
RIGL Rigel Pharmaceuticals JP Morgan Neutral  Overweight
STI SunTrust Banks Raymond James Market Perform  Outperform
USG USG CL King Buy  Strong Buy $30 $37
Downgrades
ALK Alaska Air Group Buckingham Research Buy  Neutral
BG Bunge JP Morgan Overweight  Neutral
CLMT Calumet Specialty Products Partners Ladenburg Thalmann Buy  Neutral
CYS CYS Investments JMP Securities Market Outperform  Market Perform
DHI DR Horton Sterne Agee CRT Buy  Neutral
GMT GATX Raymond James Outperform  Market Perform
GMT GATX Stifel Buy  Hold
HAFC Hanmi Financial Raymond James Strong Buy  Outperform
HIW Highwoods Properties Jefferies Buy  Hold
INDB Independent Bank Compass Point Buy  Neutral $47 $47
LSTR Landstar System Avondale Market Outperform  Market Perform
MAA Mid-America Apartment Communities Jefferies Buy  Hold
NUE Nucor Credit Agricole Outperform  Sell
PBCT People’s United Financial Piper Jaffray Neutral  Underweight
RS Reliance Steel & Aluminum Credit Agricole Buy  Underperform
RFP Resolute Forest Products CIBC Sector Perform  Sector Underperform
SFNC Simmons First National Sandler O’Neill Buy  Hold
TPX Tempur Sealy International Wedbush Outperform  Neutral $58 $58
TAC TransAlta Credit Suisse Neutral  Underperform
UTEK Ultratech DA Davidson Buy  Neutral $24 $24
UMPQ Umpqua Holdings Keefe, Bruyette & Woods Outperform  Market Perform
UAL United Continental Holdings Sterne Agee CRT Buy  Neutral
URI United Rentals Stifel Buy  Hold
URI United Rentals BofA Merrill Lynch Neutral  Underperform
WCC WESCO International Standpoint Research Buy  Hold
Initiated
CSV Carriage Services Sidoti Buy
CPXX Celator Pharmaceuticals Stifel Buy $23
DCT DCT Industrial Trust Raymond James Outperform $43
FCPT Four Corners Property Trust Raymond James Market Perform
MTDR Matador Resources Imperial Capital Outperform $25
RMR RMR Group FBR Capital Outperform $30
WINT Windtree Therapeutics H.C. Wainwright Buy $8

 

Key UK Corporate Snapshots Today

Alba Mineral Resources Plc (ALBA.L)  Announced, in its final results for the year ended 30 November 2015, that its operating loss stood at £0.2 million, compared to operating loss of £0.2 million. Net loss after tax was £0.3 million compared to loss after tax £0.2 million. The company’s diluted loss per share was 0.04p, compared to loss per share of 0.07p.

Allied Minds Plc (ALM.L)  Announced, in its annual results for the year ended 31 December 2015, that revenues dropped to $3.3 million from $7.7 million recorded in the previous year. Loss after tax widened to $98.0 million from $57.7 million. The company has not declared any dividends in the past.

Avacta Group Plc (AVCT.L)  Announced, in its unaudited interim results for the six months ended 31 January 2016, that its reported revenue stood at £1.1 million, compared to £0.7 million in the preceding period. Loss net of tax was £1.8 million compared to £1.6 million. The company’s basic and diluted loss per share was 2.61p, compared to 0.04p.

Biome Technologies Plc (BIOM.L)  Announced, in its trading update for the three months ended 31 March 2016, in advance of its annual general meeting today, that total group revenues achieved for the first three months of the year were £1.1 million, in line with the same quarter last year (2015: £1.1 million). The group’s cash position as at 31 March 2016 was £1.6 million (31 December 2015: £1.6 million) reflecting the current trading activity. Increases in capitalised development spend were offset by working capital reductions. The company continues to make good progress against the strategy as set out in the group’s full year results in March 2016 and against this background the board remains confident in the group’s outlook for the remainder of the year.

Cambridge Cognition Holdings Plc (COG.L)  Announced, in its final results for the year ended 31 December 2015, that revenues fell to £5.0 million from £5.8 million posted in the last year. The company’s loss before tax stood at £0.867 million, compared to a loss of £0.295 million reported in the previous year. The basic and diluted loss per share stood at 4.6p compared to loss of 1.1p reported in the previous year. The company’s cash and cash equivalents stood at £0.756 million (2014: £1.5 million). The company separately announced that it will raise £1.25 million through placing of 3.4 million ordinary shares at 37.0p per share. It will use the net proceeds for expanding sales infrastructure to accelerate sales growth in cash generative businesses. It also plans to commercialise healthcare products through Pharma Clinical Trials channel to generate near term income and validate technology.

Dekeloil Public Limited (DKL.L)  Announced that the company is working with Sogebourse CI, a subsidiary of Société Générale S.A., the French multinational banking and financial services company to refinance, on materially improved terms, the current senior debt facility with BOAD of €6.9 million with annual interest of 10.5%. To execute the refinance the company has completed: a credit rating process with Bloomfield Investment Corporation (“Bloomfield”), a leading African focused Credit Rating Agency and, based on the company’s audited results for 2014, received a rating of A- on short term loans and BBB- on long term loans – the Board has been advised by Sogebourse that this rating is sufficient to execute an investment grade senior debt refinance. All local government requirements have been completed – as a result DekelOil is in full compliance to commence a process of offering terms to local and regional banks, insurance companies and pension funds. Meanwhile, it is in the process of upgrading the credit rating assigned by Bloomfield – this is expected to significantly improve as it will be based on the recently released 2015 final results where management reported a 134% increase in full year revenue to €23.4 million (2014: €10 million) and EBITDA of €3.7 million (2014: €0.4 million loss). The company will provide a further update on final debt terms and timing of completion in the near future.

Frontera Resources Corporation (FRR.L)  Announced, in its operations update, that it has continued with its operations and advancing technical studies within the western and central areas at the South Kakheti Gas Complex’s Gas Window initiative in Georgia, throughout the first quarter of the year. It has identified significant natural gas resources in targeted reservoirs situated between 300 metres and 5,000 metres in depth. The company’s ongoing work has assessed the gas resources associated with its exploration and production efforts at the South Kakheti Gas Complex to contain as much as 187 trillion cubic feet of gas in place from reservoir targets found between 300 metres and 5,000 metres in depth.

Gamma Communications Plc (GAMA.L)  Announced that its direct channel has entered into three year contract with a large UK-based multinational corporation to provide UK SIP Trunking services. The contract will replace the legacy voice connectivity services currently in use, while the final roll-out will be done after it meets certain acceptance criteria over the coming months.

Immunodiagnostic Systems Hldgs Plc (IDH.L)  Announced, in its trading update for the year ended 31 March 2016, that total revenues are expected to be £39 million (2015: £45 million), in line with the guidance given in November 2015. The decrease in revenues year on year is mainly due to further reductions in our manual assay business, where test volumes continue to migrate to automated solutions offered by us and others. Gross direct instrument placements were 31 (2015: 54) with 43 instruments returned in the year (2015: 40), meaning net direct instrument returns were 12. Closing cash and cash equivalents were £26.6 million at 31 March 2016 and the company employed 315 people on a full time employment basis. Moreover, preliminary results for the year ended 31 March 2016 will be announced on 22 June 2016.

Jersey Oil & Gas Plc (JOG.L)  Announced, in its final results for the year ended 31 December 2015, that revenues slid to £4.1 million from £13.4 million posted in the preceding year. Loss before tax narrowed to £1.4 million from £44.4 million reported in the previous year. The basic and diluted loss per share stood at 29.21p compared to loss of 19.55p reported in the previous year. The company’s cash and cash equivalents stood at £0.862 million (2014: £7.4 million).

K3 Business Technology Group Plc (KBT.L)  Announced the conditional acquisition of DdD, a provider of proprietary ‘point of sale’ software/hardware for retailers, focusing on the fashion sector, for an initial cash consideration of €8.9 million (approx. £7.0 million) and a further deferred consideration of up to €1.1 million (approx. £0.9 million) dependent on the attainment of specified performance targets. DdD is being acquired on a cash free/debt free basis. The Board further announces a conditional placing to raise £13.5 million (£12.8 million after costs) at a price of 330p per 25p ordinary share in the capital of the Company (“Placing Price”, “Ordinary Shares” and the “Placing”). The net Placing proceeds will be used to fund the Acquisition (approximately £7.9 million) with the balance (approximately £4.9 million to be used for additional product enhancement opportunities and working capital.

Ladbrokes Plc (LAD.L)  Announced that Richard Moross intends to step down as a Non-Executive Director at this year’s AGM. This means he will not seek re-election as a Director at the Annual General Meeting to be held on 5 May 2016 and Resolution 10, set out in the Notice of the Annual General Meeting, will not now be put to the shareholders for approval. Mr Moross will cease to be a Director with effect from 5 May 2016.

Lok’nStore Group Plc (LOK.L)  Announced, in its interim results for the six months ended 31 January 2016, that its reported revenue stood at £7.9 million, compared to £7.6 million in the preceding year. Operating profit stood at £4.2 million, compared to £2.0 million. Profit after tax was £2.9 million compared to £1.0 million. The company’s diluted earnings per share was 11.26p, compared to 4.29p.

Outsourcery Plc (OUT.L)  Announced, in its trading update, that the full year results and current trading are in line with the Board’s expectations, this view factors in that revenue growth from the company’s strategic partners has been impacted by further partner product launch delays outside the company’s control. It will require further funding for short term working capital purposes and is therefore investigating alternative solutions to its short term cash needs including fundraising, restructuring and the disposal of non-strategic business assets. The company is in an ongoing dialogue with its principal secured lender to agree certain consents required to allow for an appropriate solution to be implemented, which is expected to provide working capital for the ongoing unified communications business. The company also continues to develop its direct sales capability and revenue opportunities with certain of its partners to concentrate on its developing market-leadership position in cloud-based Skype for Business. Further details of customer wins will be provided in due course. Meanwhile, the company also announced it will release its full year results for the year ended 31 December 2015, by 30 June 2016.

Pantheon Resources Plc (PANR.L)  Announced, in its operational update, that the operator Vision Operating Company LLC, has formally contracted the Nabors Rig F-12 for the drilling of three consecutive wells in its upcoming drilling programme. Preparations are well advanced for the planned fracture stimulation procedure at VOS#1, intended to be completed in conjunction with the upcoming drilling programme. The commercial production from VOBM#1 is estimated to begin in Q2 2016. Arrangements for the processing and transportation of natural gas production with the preferred natural gas pipeline companies are now in the final stages of negotiation.

Rame Energy Plc (RAME.L)  Announced that it has signed a development loan agreement with InterEnergy Holdings, a leading Cayman based owner of power generation and distribution assets in Latin America and the Caribbean, as part of its expanded strategic relationship. The loan will allow the company to expedite the development of a group of 11 projects with a combined generating capacity of 210MW from its development pipeline. The company will be able to borrow up to $4.0 million in tranches of $1.0 million from InterEnergy over the next 30 months. The first tranche of $1.0 million will be drawn within the next seven days, with the three subsequent tranches drawn down upon certain agreed development milestones. The loan carries an interest rate of 8% per annum and is repayable in full within 30 months of the first drawdown.

Randall & Quilter Investment Holdings Limited (RQIH.L)  Announced, in its full year results for the 12 months ended 31 December 2015, that net written premiums stood at £30.04 million, compared to £23.47 million in the same period last year. Profit after tax was £2.76 million, compared to a loss of £2.75 million. Diluted earnings per share from stood at 4.2p, compared to a loss of 6.3p.

Randgold Resources Limited (RRS.L)  Côte d’Ivoire’s first golf academy for children has been launched here at a golf day attended by the prefect of the Korhogo region, the town’s mayor and other dignitaries. The academy is a joint initiative between the Ivorian sport promotion company Team STL and Randgold, which owns and operates the Tongon gold mine in the country. Speaking at the golf day, Randgold chief executive Mark Bristow said the sport academy initiative would complement the company’s wide-ranging social responsibility portfolio of education, health, infrastructure and economic development projects.

Sirius Minerals Plc (SXX.L)  Announced, in its financial results for the nine-month period ended 31 December 2015, that its operating loss stood at £7.4 million, compared to £10.1 million in the preceding period. Loss net of tax was £6.9 million compared to £9.6 million. The company’s basic and diluted loss per share was 0.3p, compared to 0.5p.

Smart Metering Systems Plc (SMS.L)  Announced that Paul Dollman, Non-Executive Chairman of the company, has indicated to the board of directors that it is his intention to step down from his position and from the board with effect from the company’s forthcoming annual general meeting (AGM) in order to concentrate on his other business interests. Willie MacDiarmid, a Non-Executive Director of the company since 2014, will assume the role of Non-Executive Chairman with effect from the closing of the AGM.

Snacktime Plc (SNAK.L)  Announced, in its trading update based on the company’s unaudited management accounts for the period ended 31 March 2016, that consolidated revenues was £15.8 million, a decline of 2% from the previous year (prior period: £16.2 million). The operating profit before depreciation and amortization, exceptional items and interest (EBITDA) for the second half of the year is expected to be no less than the unaudited first half result £0.4million. By way of comparison, the audited financial statements for the period ended 27 March 2015 showed an EBITDA loss of £1.1 million. Secured borrowings decreased by 36% from £4.4 million at 27 March 2015 to £2.8 million at 30 March 2016, reflecting the continuing deleveraging of the balance sheet and in particular the impact of the fund raising in December 2015. Despite this progress working capital remains constrained. The vending division continues to win new contracts, including in the second half of the period tenders at Guys and St. Thomas NHS Trust, Shrewsbury and Telford Hospital NHS Trust and Colchester General NHS Foundation Trust. The company anticipates publishing its audited results by the end of September 2016. Additionally, the company also announced that it has today sent to shareholders a notice convening the annual general meeting of the company at 10.00am on 20 May 2016, which will include a resolution to change the company name to Uvenco UK plc (rather than Uvenco plc, as previously notified). A copy of the notice can be found on the website of the company at www.snacktime.com/about-us/investor-relations/financial_downloads/.

Snoozebox Holdings Plc (ZZZ.L)  Announced the following Board changes, all of which take place today with immediate effect. Lorcán Ó Murchú, Chief Executive Officer, has resigned from the Board. He will remain available to assist the company and facilitate a handover of his duties for a period of six months. Chris Errington, currently Non-executive Chairman, will take on the role of Executive Chairman on a part time basis. Prior to receiving the CEO’s resignation, the Board had begun a comprehensive review of the business. The review is nearing completion and the initial findings will be published shortly.

SolGold Plc (SOLG.L)  Announced, in its update from its Cascabel Copper-Gold Porphyry Project in Ecuador, that Hole 15R2 is currently drilling at a depth of 1401m, and continuing to intersect significant visible copper mineralisation, which is increasing with depth. Hole 17 is currently drilling at a depth of 519.4m in visible mineralisation. The updated Cascabel Project video is available in the media section of the company’s website.

Trinity Exploration & Production Plc (TRIN.L)  Announced that it has agreed a further extension to the moratorium on principal repayments, relating to its outstanding debt balance of $13.0 million with its lender, until the 29th of April 2016.

UDG Healthcare Plc (UDG.L)  Announced that will issue its interim results for the half year ended 31 March 2016 at 07:00am (BST) on Thursday 19 May 2016. The company will be hosting an analyst and investor presentation at the London Stock Exchange at 09:00am (BST) on Thursday 19 May 2016.

Vodafone Group Plc (VOD.L)  Announced that Vodafone M-Pesa has now more than 25 million active customers, marking another year of accelerated growth for the innovative mobile money transfer service. Across markets in Africa, Asia and Europe, active customers of M-Pesa increased by 27.1% to 25.3 million in the year ended 31 March 2016, boosted by market launches in Albania and Ghana and supported by a network of more than 261,000 agents in 11 M-Pesa countries.

Zambeef Products Plc (ZAM.L)  Announced, in its update on trading for the six months ended 31 March 2016, that the Group expects turnover, operating profit and adjusted profit before tax to be ahead of market forecasts. This improvement has been driven by a robust performance in the first six months of the financial year, with the key business divisions of cold chain food product retailing, stock feed and farming all continuing the strong trading seen in 2015. The Group’s strategic focus remains on expanding and developing the retailing and distribution of the cold chain food product business.

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