Monday, October 19, 2009

London Broker Recommendation 19.10. 2009

Broker tips: National Express, Bunzl, small caps


Panmure Gordon has raised its recommendation on National Express to ‘buy’ from ‘hold’ following the announcement of a ‘highly preliminary proposal’ by fellow rail and bus group Stagecoach to acquire the firm.

Shares in National Express collapsed on Friday after a consortium including the Cosmen family, a large shareholder in the group, abandoned a proposal to make a 500p a share bid for the group.

Stagecoach’s proposal announced Monday would result in National Express shareholders owning ‘no more than 40% of the enlarged group.’ Panmure notes that this compares with National Express’s 33% share of the combined market capitalisation of both companies, based on Stagecoach’s closing price last Friday, which would thus imply an offer price of about 490p.

Broker Charles Stanley remains a buyer of Bunzl after the distribution group’s interim management statement indicated margins are on the mend.

‘As expected, overall profit margins have improved compared to the first half largely due to the favourable impact of cost reduction initiatives already taken and a reduced negative transaction impact from foreign exchange,’ said Tony Shepard, investment analyst at Charles Stanley.

Broker Recommendations

DateCompany NameTickerBroker NameRecommendPriceOld Target PriceNew Target PriceBroker Change
19-Oct-09ARM HoldingsARMJefferiesBuy156.40p--Reiteration
19-Oct-09AstraZenecaAZNPanmure GordonHold2,792.50p3,100.00p-Reiteration
19-Oct-09AvivaAV.Panmure GordonBuy441.90p526.00p-Reiteration
19-Oct-09British Land CoBLNDEvolution SecuritiesBuy487.70p--Reiteration
19-Oct-09BT GroupBT.ACitigroupHold133.70p120.00p135.00pReiteration
19-Oct-09BunzlBNZLCharles StanleyBuy648.00p--Reiteration
19-Oct-09BunzlBNZLPanmure GordonHold648.00p550.00p660.00pReiteration
19-Oct-09CadburyCBRYJefferiesBuy792.00p900.00p945.00pReiteration
19-Oct-09FirstGroupFGPShore CapitalBuy409.40p--Reiteration
19-Oct-09Land Securities GroupLANDEvolution SecuritiesAdd647.50p--Reiteration
19-Oct-09Lloyds Banking GroupLLOYUBSBuy93.26p130.00p-Reiteration
19-Oct-09Stagecoach GroupSGCMorgan StanleyEqual-weight155.70p174.00p-Reiteration
19-Oct-09Stagecoach GroupSGCCollins StewartBuy155.70p178.00p-Upgrade
19-Oct-09Stagecoach GroupSGCShore CapitalBuy155.70p--Reiteration
19-Oct-09Vodafone GroupVODJP MorganOverweight133.75p173.00p-Reiteration

Other Company Recommendations Today

Admiral Group, Anglo American, Autonomy Corporation, Aveva Group, Aveva Group, Aveva Group, BlueBay Asset Management, C&C Group, Carphone Warehouse Group, Goldenport, Gresham Computing, Hammerson, Hardy Underwriting Bermuda, Heritage Oil, Heritage Oil, HMV Group, Imagelinx, Lonmin, National Express Group, National Express Group,National Express Group, Petropavlovsk, Senior, SQS Software Quality Systems, Standard Life, Stobart Group, Trans-Siberian Gold, WH Smith, WH Smith, William Hill, William Hill, William Hill, William Hill, Xchanging, Xstrata
Posted by suprastock at 10/19/2009 02:58:00 PM

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