18 hours ago
Benjamin Chiou
The recent rally in Kingfisher's share price was paused on Thursday morning after Nomura downgraded its rating on the stock from 'neutral' to 'reduce', saying that shares in the B&Q owner have travelled too far given the tough times ahead. [read more]
At a 33 per cent premium to their net asset value one could be forgiven for worrying that shares of Great Portland Estates are considerably overvalued. After all, that was the valuation reached just before the Great Bubble burst, with an all too familiar ending. Further, the company is essentially a big bet that the London office market will continue to thrive in the long-term. Having said that, the current Chief Executive has 'called the market' correctly before and in the last downturn the company bought land on the cheap. Significantly, 81 per cent of the firm´s assets are in the West End and not just in London. This area has not seen the sort of rental growth witnessed during the early Noughties. Even so, there is no harm in taking some profits on shares that have outperformed, says The Times´s Tempus. 21 hours ago
Benjamin Chiou
Shares in chip designer ARM Holdings were under heavy selling pressure on Wednesday following the group's investor day this week, with a number of brokers choosing to remain cautious on the name given the stock's sky-high valuation after a strong rise so far this year. 2 days ago
Despite the falls evident in yesterday´s quarterly results, in what has traditionally been its main performance metric -organic service revenues - any weakness in Vodafone´s share price looks like it would be a buying opportunity, says The Times´s Tempus. Above all, it is hard to see how the situation with Verizon will not work itself out in its favour. Furthermore, the telecoms operator will likely bid for spectrum licenses when they come up for sale in countries such as Hungary, South Africa and India, for example. Then there are the prospects for Voda´s share of profits out of Verizon, which increased by almost a third in 2012. 2 days ago
Jefferies has kept its 'buy' rating and 1,010p target price for outsourcing giant Capita after a 'significant contract win' announced on Tuesday with O2. 3 days ago
While it may be true that ENRC may be worth more as a privately held company than as a listed concern minority owners deserve more than the 260p per share offered by the group's founding oligarchs and the Kazakh government, which amounts to daylight robbery, the FT's Lex column muses. For one, said bid price values the company at barely 2.5 times its 2013 earnings before interest, tax, depreciation and amortisation costs (EBITDA) versus the 5 times EBITDA on which Kazakhmys and Rio Tinto are now trading, for example. And on a 'sum-of-the-parts' basis ENRC may be worth 6 pounds, some analysts think. On the other hand, the paltry sum on offer may be the only thing propping the share price up. 3 days ago
Budget airline easyJet was flying high on Monday morning after Citigroup lifted its target price and kept its 'buy' rating for the stock following last week's first-half results. 4 days ago
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