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Tech Capital

Broker spotlight : IAG, BAT Intertek Group, Centrica, Providence Resources, Paragon Diamonds...

IAG downgraded to sell, BAT cheap relative to rivals while Providence Resources gets an upgrade after latest seismic.

Take profits in British Airways owner IAG (LON:IAG), says Canaccord, which has decided to leave the airline’s fan club despite solid earnings and a profit upgrade for 2015.

The carrier may struggle to meet margins expectations if premium passenger demand and yields weaken, said the broker. IAG still also has some unhedged exposure to the jet fuel price, which is ticking-up. 

The shares trade on a 16% premium to the sector, but the good news is priced in according to Canaccord, which downgrades to ‘sell’ from ‘hold’.

British American Tobacco (LON:BATS) is still a ‘buy’ for Jefferies, which has also raised the tobacco giant’s share price target.

Pricing and volume is on an improving trend and with currencies an industry problem the rating is looking anomalously low relative to both Imperial and Philip Morris.  Buy with a new target of 4,400p said the US broker.

Providence Resources (LON:PVR) has been raised to ‘buy’ from  ‘hold’ by Canaccord. Today’s 3D seismic data from Drombeg in the Irish Atlantic Margin yields looked promising said the broker.

Northland repeated its 'buy' on Paragon Diamonds (LON:PRG) after recent "positive" changes in the mining group's shareholder register, which has seen Titanium Capital lift its stake and Obtala Resources (LON:OBT) reduce its holding.

Titanium is a private equity investment group controlled by Paragon's executive chairman Philip Falzon Sant Manduca.

Goldman Sachs has raised its earnings targets for pharma giant Shire (LON:SHP) to incorporate recent acquisition NPS.

earnings estimates for 2015-18 rise by up to 7.5% though the broker expects Shire to busy spending on other opportunities.

The 12-month price target is now 6400p (from 5600p) or 20% upside. 

Shire is a top EU pharma pick says the US heavyweight and a 'conviction list buy'.

Plenty of positive notes on Intertek Group (LON:ITRK) this morning.

The product testing firm was the best performing FTSE 100 stock yesterday after raising its dividend and sending out a positive outlook.

Today, JP Morgan Cazenove, Deutsche Bank and Jefferies have all upgraded the firm, although HSBC isn’t keen and has cut its stance to ‘neutral’.

Wealth manager St James’s Place (LON:STJ) has had its share price target upped by Credit Suisse to 970p from 950p.

Centrica (LON:CNA) is in favour with Macquarie Research, which now has an ‘outperform’ rating on the energy giant.

Deutsche Bank analysts took the shine off silver specialist Fresnillo (LON:FRES) with a downgrade. Liberum Capital downgraded coach operator National Express (LON:NEX) to ‘hold’ from ‘buy’.

© tech Capital 2019

Tech Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed tech companies to interact with institutional and highly capitalised investors.
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