Tuesday, October 27, 2009

LONDON Broker Recommendation Round up 27 October 2009

Broker tips: BP, BAE, Mears

Corporate finance and broking house Hanson Westhouse said third quarter figures from BP were ‘solid’, despite the oil giant seeing a sharp reduction in adjusted replacement cost profit.

Replacement cost profit, excluding non-operating items and fair value accounting effects, was $4.7bn, well ahead of expectations of $3.2bn, Hanson said, with higher production and lower costs mitigating the effects of lower oil and gas prices.

‘Meanwhile, Refining and Marketing did significantly better than expected despite the collapse in refining margins,’ the broker said.

As Hanson Westhouse predicted, the third quarter divi was held, and with the cost cutting programme going ‘from strength to strength’ the broker has reiterated its ‘buy’ recommendation.

Seymour Pierce is another broker banging the drum for BP, saying the results were ‘materially better than expected.’ Though the broker had hoped the oil company would ratchet up the quarterly dividend from 14 cents to 14.5 cents, the company’s stated commitment to maintaining its pay out should ally general concerns about the future of the dividend.

Broker Recommendations

DateCompany NameTickerBroker NameRecommendPriceOld Target PriceNew Target PriceBroker Change
27-Oct-09ARM HoldingsARMPanmure GordonSell150.80p135.00p-Reiteration
27-Oct-09ARM HoldingsARMAstaire SecuritiesHold150.80p--Reiteration
27-Oct-09Associated British FoodsABFDeutscheHold848.00p680.00p840.00pReiteration
27-Oct-09BAE SystemsBA.NomuraBuy319.00p450.00p-Reiteration
27-Oct-09BPBP.ING BaringsBuy588.60p635.00p-Reiteration
27-Oct-09BPBP.Charles StanleyAccumulate588.60p--Upgrade
27-Oct-09BPBP.FinnCapBuy588.60p--Reiteration
27-Oct-09British AirwaysBAYAstaire SecuritiesBuy198.20p--Reiteration
27-Oct-09GKNGKNUBSBuy114.40p135.00p140.00pReiteration
27-Oct-09GlaxoSmithKlineGSKAstaire SecuritiesBuy1,260.00p--Reiteration
27-Oct-09PearsonPSONUBSBuy844.00p840.00p940.00pReiteration
27-Oct-09Standard CharteredSTANCitigroupHold1,570.00p1,450.00p1,550.00pReiteration
27-Oct-09United Business MediaUBMCanaccord AdamsHold487.30p508.00p490.00pReiteration
27-Oct-09WPP GroupWPPCitigroupNeutral557.00p500.00p625.00pReiteration
27-Oct-09WPP GroupWPPJP MorganNeutral557.00p500.00p625.00pReiteration

Other Company Recommendations Today

Advanced Computer Software, Alterian, Aquarius Platinum Ltd., Aquarius Platinum Ltd., Ashmore Group, Aurelian Oil & Gas,Baqus, Braemar Shipping Services, Charter International, Close Brothers Group, Cookson Group, CSR, Enterprise Inns,Fiberweb, Greene King, Griffin Mining, H & T Group, HMV Group, Kingfisher, Marks & Spencer Group, Mcbride, Mears Group,Morgan Crucible, Old Mutual, Prodesse Investment Ltd., Punch Taverns, Punch Taverns, Reed Elsevier, SeaEnergy, Shire Plc,Sport Media Group, TUI Travel, Virgin Media Inc., Vislink, Whitbread

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