Broker Upgrades and Downgrades & Key UK Corporate Snapshots 09 February 2016

UK Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
AAL Anglo American Plc JP Morgan Cazenove Underweight Underweight 210 250
BBA BBA Aviation Plc Citigroup Buy Buy 210 230
GLEN Glencore Plc RBC Capital Markets Sector Perform Outperform 135
ICP Intermediate Capital Group Plc Jefferies International Buy Buy 656 735
MRO Melrose Plc JP Morgan Cazenove Overweight Overweight 307 355
OML Old Mutual Plc SBG Securities Hold Buy 220
RRS Randgold Resources Ltd Jefferies International Hold Hold 4000 5500
RRS Randgold Resources Ltd Nomura Reduce Reduce 3850 4350
WPP WPP Plc JP Morgan Cazenove Overweight Overweight 1760 1770
Downgrades
ANTO Antofagasta Plc Goldman Sachs Neutral Sell
BLVN BowLeven Plc Barclays Capital Equal weight Equal weight 32 28
ENQ EnQuest Plc Barclays Capital Underweight Underweight 30 15
IAE Ithaca Energy Inc Barclays Capital Overweight Overweight 50 30
PMO Premier Oil Plc Barclays Capital Equal weight Equal weight 60 50
RB. Reckitt Benckiser Group Plc Jefferies International Buy Buy 7100 6800
RRS Randgold Resources Ltd UBS Buy Neutral
RRS Randgold Resources Ltd HSBC Buy Hold
SVS Savills Plc Citigroup Neutral Neutral 890 790
TLW Tullow Oil Plc Barclays Capital Overweight Overweight 300 280
VED Vedanta Resources Plc Goldman Sachs Buy Neutral
Initiate/Neutral/Unchanged
AMER Amerisur Resources Plc Barclays Capital Equal weight Equal weight 30 30
AZN AstraZeneca Plc JP Morgan Cazenove Neutral Neutral
BKG Berkeley Group Holdings Plc Jefferies International Buy Buy 4650 4650
BLT BHP Billiton Plc RBC Capital Markets Sector Perform 700
BLT BHP Billiton Plc JP Morgan Cazenove Underweight Underweight 550 550
BME B&M European Value Retail Peel Hunt Buy Buy 440 440
CNE Cairn Energy Plc Barclays Capital Equal weight Equal weight 180 180
FPM Faroe Petroleum Plc Barclays Capital Equal weight Equal weight 75 75
GENL Genel Energy Plc Barclays Capital Overweight Overweight 350 350
GLEN Glencore Plc JP Morgan Cazenove Overweight Overweight 130 130
IMG Imagination Technologies Group Plc JP Morgan Cazenove Neutral Neutral 190 190
MTC Mothercare Plc JP Morgan Cazenove Overweight Overweight 300 300
OPHR Ophir Energy Plc Barclays Capital Overweight Overweight 130 130
PLND Poundland Group Plc Peel Hunt Buy Buy 400 400
RIO Rio Tinto Plc RBC Capital Markets Underperform 1500
RIO Rio Tinto Plc JP Morgan Cazenove Overweight Overweight 1700 1700
RRS Randgold Resources Ltd Barclays Capital Overweight Overweight 4800 4800
SBRY J Sainsbury Plc Barclays Capital Equal weight Equal weight 250 250
SIA Soco International Plc Barclays Capital Underweight Underweight 130 130
STJ St James’s Place Plc Citigroup Neutral Neutral 915 915

 

US Broker Upgrades / Downgrades

 

 

Code Company Broker Recomm. From Recomm. To Price From Price To
Upgrades
AMED Amedisys Oppenheimer Perform  Outperform $40 $40
ACC American Campus Communities Canaccord Genuity Hold  Buy $43 $48
ATHN athenahealth Topeka Capital Markets Hold  Buy $169 $160
BECN Beacon Roofing Supply Raymond James Outperform  Strong Buy
BNPQY BNP Paribas Kepler Sell  Hold
CSFL CenterState Banks FIG Partners Market Perform  Outperform
CSCO Cisco Systems Macquarie Underperform  Neutral
DLTR Dollar Tree Telsey Advisory Group Market Perform  Outperform $80 $95
DOW Dow Chemical Susquehanna Neutral  Positive
PLUS ePlus Sidoti Neutral  Buy
ESS Essex Property Trust Mizuho Neutral  Buy $234 $234
GLOB Globant Citigroup Neutral  Buy
LMAT LeMaitre Vascular Sidoti Neutral  Buy
OMAM OM Asset Management Citigroup Neutral  Buy
OA Orbital ATK KeyBanc Capital Markets Sector weight  Overweight
SCG SCANA Corp Mizuho Neutral  Buy $56 $71
SXT Sensient Technologies Gabelli & Co Hold  Buy $71 $71
STJ St. Jude Medical Canaccord Genuity Sell  Hold $54 $54
SCNB Suffolk Bancorp FIG Partners Market Perform  Outperform
SUPN Supernus Pharmaceuticals Jefferies Hold  Buy
TM Toyota Motor Credit Agricole Outperform  Buy
ULTI Ultimate Software Group FBR Capital Market Perform  Outperform $205 $205
VCISY Vinci SA HSBC Securities Hold  Buy
Downgrades
AM Antero Midstream Partners Robert W. Baird Outperform  Neutral $32 $23
AZN AstraZeneca HSBC Securities Buy  Hold
BHI Baker Hughes Morgan Stanley Overweight  Equal weight
BCRX BioCryst Pharmaceuticals Piper Jaffray Overweight  Neutral
BRX Brixmor Property Group Wells Fargo Outperform  Market Perform
BRX Brixmor Property Group KeyBanc Capital Markets Overweight  Sector weight
BRX Brixmor Property Group Sun Trust Rbsn Humphrey Buy  Neutral
BRX Brixmor Property Group JP Morgan Overweight  Underweight
BRX Brixmor Property Group Sandler O’Neill Buy  Hold
CBOE CBOE Holdings Credit Agricole Outperform  Underperform
CTRN Citi Trends MKM Partners Buy  Neutral $29 $20
CRZBY Commerzbank AG Keefe, Bruyette & Woods Market Perform  Underperform
DXCM DexCom Robert W. Baird Outperform  Neutral $100 $74
ETP Energy Transfer Partners Robert W. Baird Outperform  Neutral $51 $25
ETE Energy Transfer Equity Robert W. Baird Outperform  Neutral $30 $7
ENLC EnLink Midstream Robert W. Baird Outperform  Underperform $29 $10
ES Eversource Energy Macquarie Outperform  Neutral
ES Eversource Energy Barclays Overweight  Equal weight $57 $58
HSBC HSBC Holdings Morgan Stanley Equal weight  Underweight
NMR Nomura Holdings Jefferies Buy  Hold
OKE ONEOK Robert W. Baird Outperform  Neutral $28 $24
OKS ONEOK Partners Robert W. Baird Neutral  Underperform $25 $24
PAA Plains All American Pipeline Robert W. Baird Outperform  Underperform $25 $16
PAGP Plains GP Holdings Robert W. Baird Neutral  Underperform $10 $6
RL Ralph Lauren Atlantic Equities Overweight  Neutral
DATA Tableau Software Morgan Stanley Overweight  Equal weight
TEGP Tallgrass Energy GP Robert W. Baird Outperform  Neutral $21 $16
WETF WisdomTree Investments Keefe, Bruyette & Woods Market Perform  Underperform
Initiated
ACAD ACADIA Pharmaceuticals BofA Merrill Lynch Buy $40
RATE Bankrate Sidoti Buy
BDSI BioDelivery Sciences International Piper Jaffray Overweight
DEPO Depomed Piper Jaffray Overweight
GCP GCP Applied Technologies Goldman Sachs Neutral
GLOB Globant BWS Financial Sell $16
NWL Newell Rubbermaid Gabelli & Co Buy $59

 

Key UK Corporate Snapshots Today

7digital Group Plc (7DIG.L)  Announced that Sir Hossein Yossaie has resigned as a Non-Executive Director of the company with immediate effect, following his resignation as Chief Executive Officer at Imagination Technologies Group plc.

Allied Minds Plc (ALM.L)  Announced, in its trading statement for the financial year ended 31 December 2015, that during 2015, $102.8 million was invested into new and existing portfolio companies, including its fundraisings of $63.6 million, with $42.2 million coming from third-party investment, to further accelerate the development of two of the Group’s existing companies, SciFluor Life Sciences and Precision Biopsy. SciFluor Life Sciences, a drug discovery company applying expertise in fluorine chemistry, raised $30.0 million at a post money valuation of $130.7 million, up from $37.1 million, to accelerate its two lead compounds – a treatment for retinal diseases and a treatment for neurological diseases. Precision Biopsy, a company developing early intervention technology that detects in real time suspicious tissue during biopsy examinations, raised $33.6 million at a post money valuation of $90.4 million, up from $19.0 million, to accelerate the commercialisation of its ClariCore Biopsy System, and develop its Focal Therapy programme. $39.2 million was invested by the Group into new and other existing portfolio companies, including investments in four new businesses: BridgeSat, ABLS I (Yale), HawkEye 360 and ABLS II (Harvard). During the year, the company engaged with over 90 new research institutions, bringing the total U.S. universities and federal laboratories in the Allied Minds partner network to 160, from 68 at the end of 2014. The investment team reviewed more than 5,000 new technologies developed by the partner network, and following extensive due diligence on over 20 of the most promising, formed and funded four new businesses, resulting in a total Group portfolio of 23 subsidiary businesses at December 2015, and executed options to license three additional technologies. Net cash and investments of $194.8 million, (2014: $261.5 million) includes cash in form of fixed income securities. Revenues of $3.2 million, (2014: $7.7 million) primarily reflecting revenue shortfall at RF Biocidics (RFB), which following initial regulatory approval now requires certification for each individual installation and is subsequently delaying revenue. Group Subsidiary Ownership Adjusted Value (GSOAV) at 31 December 2015, while still being finalised, is expected to be comfortably ahead of the prior year due to the strong growth of several key subsidiaries offset by the planned closing of SiEnergy and the reduction in value of RFB. Additionally, the Group has continued to evolve and strengthen its Board and management with the following key appointments: Joseph Pignato, Chief Financial Officer, (former CFO of Swipely, Charles River Ventures, Prism Ventures and Lightbridge); Kevin Sharer, Independent Non-executive Director, (former Chairman and CEO of Amgen); and Post year end – Jill Smith, Independent Non-executive Director (former Chairman, CEO and President of DigitalGlobe).

Artilium Plc (ARTA.L)  Announced, in its trading update for the year ended 30 June 2015, that the investment made in improving the fundamentals of the company’s performance, together with the recent acquisitions, would form the basis of the next phase of the business which would see growth in customer base and revenues from software products. A number of previously delayed high margin projects are expected to be completed soon. The company now expects a revenue of approximately €4.3 million and adjusted LBITDA of approximately €0.3 million for the six months ended 31 December 2015 and continues to explore further complimentary acquisition opportunities.

Assura Plc (AGR.L)  Announced, in its trading update for the period from 1 October to 8 February 2016, that the annualised rent roll reached to £61.8 million (September 2015: £59.6 million), driven primarily by acquisitions. The company completed an equity raise of £300 million, net of expenses, to fund further acquisitions and developments. After the equity raising, the proceeds were applied to reduce the long-term debt by £181 million, a temporary repayment of the revolving credit facility of £35 million and 12 property additions with a gross value on completion of £39 million. The company separately announced that its Chief Executive, Graham Roberts, has been diagnosed with cancer. He continues to receive treatment and is actively involved in running the business.

B.P. Marsh & Partners Plc (BPM.L)  Announced, in its trading update for the financial year ended 31st January 2016, that the group subscribed for a further investment in Nexus in December 2015, taking its shareholding in Nexus to 13.7%. The group expects to realise its remaining 1.6% stake in Hyperion in July 2016, for £7.3 million cash consideration. The board recommended a dividend of 3.42p per share for the financial year ended 31st January 2016, amounting to £1.0 million. The net cash available for investment after provision for commitments to the existing portfolio stood at £3.6 million at the end of the period. The group expects 2016 to be a further year of M&A activity in the insurance market, as organic growth remains difficult to achieve in a slow market.

Britvic Plc (BVIC.L)  Announced the appointment of Euan Sutherland and Sue Clark as independent Non-Executive Directors of the Company with effect from 29th February 2016. Euan would also serve on Britvic’s Audit Committee, and Sue on the Remuneration Committee. Further, Bob Ivell would step down from the Board at the same date.

Circle Holdings Plc (CIRC.L)  Announced the following trading update ahead of announcing its results for the financial year ended 31 December 2015, that it exceeded management expectations for both Group revenue and EBITDA, with all assets delivering improved results year-on-year. 2015 saw an increase in both patient volumes and revenue across the Group. EBITDA pre-exceptionals delivered an improvement of over 50% compared to 2014. All sites excluding CircleReading are now operating on an EBITDA positive basis. The Group ended 2015 with a cash balance of £15.0 million. Reading and Nottingham hospitals expect to see continued growth in NHS volumes as well as increased self-pay patient volumes. PMI volumes and revenue are anticipated to remain flat in 2016. The company will announce its results for the 2015 financial year on 30 March 2016.

Cyan Holdings Plc (CYAN.L)  Announced the receipt of an initial purchase order from telecommunications contractor Micromodje for a 2,000 unit smart metering implementation, which will be fitted into street traffic cameras in the Islamic Republic of Iran. This initial purchase order is worth £67,000 with an upfront payment of £50,000. The company and Micromodje have now commenced discussions on a larger purchase order for smart electricity metering solutions to be deployed within Iran. The Iran Government estimate is 33 million smart electricity meters will be required.

Firestone Diamonds Plc (FDI.L)  Announced that the company continued to make excellent progress at Liqhobong and as at the end of January 2016 the project was 65% complete, which is in line with the revised schedule announced on 23 June 2015.

Frontera Resources Corporation (FRR.L)  Announced that it has signed a Memorandum of Understanding (“MOU”) with Ukraine’s public joint stock company UkrGasVydobuvannya (“UGV”), a subsidiary of Ukraine’s national energy company, National Joint Stock Company Naftogaz of Ukraine (“Naftogaz”). The MOU furthers a focused joint effort that was established last year between Frontera and Naftogaz, which led to a strategic MOU being signed in July 2015.

Grainger Plc (GRI.L)  Announced that Grainger and APG’s market-let UK residential property fund GRIP has acquired the freehold interest in Kew Bridge Court in Kew Bridge, London W4, for a total consideration of £57.3 million. Kew Bridge Court occupies a 2.2 acre site opposite the entrance to Kew Bridge Overground Station in the London Borough of Hounslow and is 30 minutes from central London. GRIP was set up early 2013 and is 25:75 backed by Grainger and APG respectively, with Grainger providing asset and property management services that cover overhead costs and supplement returns.

Horizonte Minerals Plc (HZM.L)  Announced the award of four new concession areas adjacent to its Araguaia nickel project which is being developed as the next major nickel project in Brazil. Two new southern concessions, totalling 15,674 hectares, are located in a prospective position adjacent to the Jacutinga and Pequizeiro deposits of the Araguaia Nickel project. Two new northern concessions, totalling 4,325 hectares, are located south of the recently acquired Glencore project ‘GAP’ area containing the advanced Serra do Tapa nickel laterite deposit. Further applications for 5,998 hectares are also filed with the Mines Department for three additional concessions to the south of the GAP project area.

ICAP Plc (IAP.L)  Announced, in its trading statement for the period from 01 October 2015 to 31 December 2015, that the company’s Group revenue from continuing businesses for the third quarter to 31 December 2015 was 5% lower than the same period last year on a constant currency and on a reported basis. Overall market conditions have remained challenging. Risk appetite remains subdued amongst our clients as they continue to deleverage their balance sheets. The first step in the normalisation of the US interest rate environment was taken as the US Federal Reserve raised interest rates by a quarter percentage point. However, volatility remained relatively benign through the quarter before picking up at the start of the new calendar year. Revenue decreased by 10% on a constant currency basis (7% on a reported basis) during the third quarter compared to the same period last year. Despite maintaining its leading market position average daily volumes in US Treasuries on the BrokerTec platform were down 11% to $147 billion. This was against demanding comparables in the previous year, which saw an unusually high level of volatility and one of the biggest intraday moves ever. In US repo average daily volumes decreased by 1% to $219 billion and decreased in European repo by 3% to €168 billion. Revenues increased 8% on a constant currency basis and on a reported basis during the third quarter compared to the same period last year, driven by continued demand for TriOptima’s compression and reconciliation services. In October, TriOptima launched the triReduce CLS Forward FX Compression Service completing the first successful compression cycle for FX forwards and swaps transactions. Following the introduction of new margining rules for uncleared swaps, TriOptima has integrated with AcadiaSoft to deliver an end-to-end solution fulfilling all related regulatory requirements. Meanwhile, revenue from continuing businesses decreased by 7% on a constant currency basis and on a reported basis during the third quarter compared to the same period last year. Year-on-year revenue performance in November and December was much improved on October. The ongoing structural and cyclical factors affecting the division persist, including further deleveraging by the investment banks. Strong revenue growth from electronic matching sessions continues to develop especially in the Asia Pacific region and the Americas.

Inchcape Plc (INCH.L)  Announced the appointment of Richard Howes as the Group’s new Chief Financial Officer following the previously announced decision of John McConnell to leave the Group and return to his native Australia. John will leave the company on 29 February 2016 and Richard will take up his appointment, and join the Inchcape Board, on 11 April 2016.

InternetQ Plc (INTQ.L)  Announced, in its trading update for the year ended 31 December 2015, that the company has continued to deliver strong growth during 2015, with revenues increasing by 14% to €150.0 million. The B2B segment contributed 72% of these revenues and the B2C 28%. Cash levels as at 31 December 2015 were €19.0 million. Furthermore, the Group continues to look at opportunities to increase its footprint in existing geographies where it has a presence, as well as increasing its foothold in Europe through its new Berlin office and focuses on developing and evolving its minimob mobile app-focused advertising platform, whilst also looking at international growth opportunities and product differentiation for its Akazoo service.

Ludgate Environmental Fund Limited (LEF.L)  Announced, in its unaudited interim results for the six months ended 31 December 2015, that its reported revenue stood at £1.2 million, compared to £0.6 million in the preceding period. Total comprehensive loss was £7.8 million compared to £4.0 million. The company’s loss per share was 0.10p, compared to 0.08p.

New Europe Property Investments Plc (NEPI.L)  Announced, in its half year results for six months ended 31 December 2015, that gross rental income rose to €104.1 million from €61.7 million posted in the same period preceding year. The company’s profit before tax stood at €179.8 million, compared to a profit of €94.9 million reported in the previous year. The basic earnings per share stood at 55.68c compared to earnings of 44.0c reported in the previous year. The company’s cash and cash equivalents stood at €326.6 million (31 December 2014: €108.2 million)

Northgate Plc (NTG.L)  Announced the appointment of Patrick (“Paddy”) Gallagher as Group Finance Director with effect from 22 February 2016.

Redrow Plc (RDW.L)  Announced, in its unaudited interim results for the six months ended 31 December 2015, that its reported revenue stood at £603.0 million, compared to £560.0 million in the preceding period. Profit after tax was £83.0 million compared to £72.0 million. The company’s diluted earnings per share was 22.8p, compared to 19.9p.

Sabien Technology Group Plc (SNT.L)  Announced, in its unaudited interim results for the period to 31 December 2015, that revenue stood at £0.32 million compared to £0.54 million in the same period last year. Operating loss stood at £0.98 million, compared to £0.53 million. Loss after tax stood at £0.98 million, compared to $0.52 million in the same period last year. Basic and diluted loss per share stood at 2.3p, compared to 1.6p.

Secure Income REIT Plc (SIR.L)  Announced that the board has continued its discussion with certain major shareholders regarding the options of widening the company’s shareholder base through a potential sale of all or part of their shareholdings in the company. It is now actively engaged in assisting them with the process by appointing Stifel and Goldman Sachs to consider appropriate options.

Sophos Group Plc (SOPH.L)  Announced, in its trading statement for the three-month period to 31 December 2015, that third-quarter like-for-like billings were up 17.4% year-over-year with growth across all major regions and product categories, notwithstanding stronger quarterly comparatives. The reported billings grew 10.6 percent on a yearly basis, reflecting significant currency headwinds including the devaluation of the Euro and Sterling against the US Dollar. The reported revenue of $121.40 million up 4.7% on a yearly basis, 11.9% growth at constant currency and the reported cash EBITDA of $34.80 million up 5.5% on a yearly basis, 16.3% growth at constant currency.

Sound Energy Plc (SOU.L)  Announced that following first gas on 3 February 2016, clean up operations at the onshore Nervesa gas discovery continue. Early production has been limited by the company to an initial rate of 1.0 MMscf/d during daytime hours and 0.7 MMscf/d overnight and the company will begin ramping up production levels over the coming months to the planned production rate of 1.8MMscf/d.

Tern Plc (TERN.L)  Announced that Cryptosoft, the data security company, has launched V4 security solutions for the IoT and M2M devices. The company also announced that Cryptosoft has appointed Dan McDuffie as a Board Advisor.

TUI AG (TUI.L)  Announced, in its first quarter results for the three months ended 31 December 2015, that its turnover stood at €3,718.4 million, compared to €3,526.4 million in the preceding period. Loss net of tax was €160.7 million compared to €132.2 million. The company’s basic loss per share was 0.31c, compared to 0.31c.

Tungsten Corporation Plc (TUNG.L)  Announced that it is hosting a Capital Markets Day at the offices of Panmure Gordon, One New Change, London EC4M 9AF at 2.00 p.m. today. Senior management will be presenting on Tungsten’s business and strategy. Further, in its trading statement the company announced that trading in the third quarter was in line with market expectations, and that revenues for the full year ended 30 April 2016 are expected to be broadly in line with its previous guidance. The Board is confident that Tungsten is on track to achieve break-even on an EBITDA basis by the end of FY17 and a positive EBITDA for the six-months ending 31 October 2017.

ValiRx Plc (VAL.L)  Announced, in its quarterly update on clinical progress, that its Phase l/ll Clinical Trial of VAL201 is being well tolerated up to a putative therapeutic dose by patients with hormone resistant prostate cancer and that it has shown a high degree of safety, with no drug related significant adverse events being reported. Further, the company has started the design of the protocol to test VAL201 for its in-human potential in the treatment of the debilitating female condition of Endometriosis. ValiRx has already shown good pre-clinical results for this indication.

Vedanta Resources Plc (VED.L)  Announced that maximum acceptance amount of the outstanding Bonds that the Offeror might purchase has been increased from $250,000,000 to $321,900,000. Meanwhile, the total consideration payable to each Bondholder in respect of Bonds validly submitted for tender and accepted for purchase pursuant to the Offer, will be an amount in cash (rounded to the nearest $0.01, with $0.005 rounded upwards) equal to the sum of (i) the Purchase Price in respect of the aggregate principal amount of such Bonds validly tendered by a Bondholder and accepted for purchase by the Offeror (the “Purchase Consideration”) and (ii) the Accrued Interest Payment in respect of such Bonds ($412.50 per $100,000 in principal amount of the Bonds). The expected Settlement Date for the Offer is 10 February 2016. In Accordance with the Terms and Conditions of the Bonds the purchased Bonds may either be surrendered by the Offeror, at its sole discretion, to Vedanta Resources Jersey Limited for cancellation or be held until their maturity date.

Xeros Technology Group Plc (XSG.L)  Announced that it has signed a contract to provide and service eight of its washing machines to New York City based laundry service provider eLaundry.com, under the Group’s integrated purchase and service package, Xeros SbeadycareR. The agreement is expected to be worth approximately $1 million in revenue to the company over the course of the eight year contract.

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