| CATEGORY: BROKER RECOMMENDATIONS SECTOR: OIL & GAS PRODUCERS |
Broker tips: Shell, Emap, Ladbrokes, William Hill |
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Fri 19 Oct 2007
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LONDON (SHARECAST) - Royal Dutch Shell rallied Friday on near-record oil prices and a decision by Goldman Sachs to remove the oil major from its Conviction Sell list and upgrade the shares to ‘neutral’.
The broker continues to feel that Shell faces three years of heavy investment in its new legacy assets without the likelihood of material production growth or cash flow uplift if the macro environment remains flat.
It has left its earnings estimates unchanged and has a 12-month 2,250p price target on the shares.
Magazine group Emap dipped today after Morgan Stanley lowered its view on the shares to 'equal-weight' from 'overweight' wit price target cut to 1,000p from 1,025p.
The broker said the firm is being broken up for sale and so its new price target reflects a most likely sum-of-the-parts valuation.
Emap shares have risen to more than 900p from just over 750p since late July, just before it announced a strategic review.
Bookmaker Ladbrokes has been started as ‘overweight’ at Lehman Brothers with 475p price target as it believes the firm has better short term prospects than William Hill.
Lehman says it favours the firm’s greater number of amusement with prizes (AWP) machines as well as cost reduction in the retail network, more advanced international expansion and better technology in the interactive business.
William Hill is rated ‘underweight’ with 700p target.
Both stocks are little changed.
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