Home
Investment
News & Views
Market Reports
Broker tips: Bellway, UK banks, Synergy Healthcare
Mon, 01 Dec, 2008
INVESTMENT NEWS
Company Search
Search QCK.COM
Investment Home
News & Views
Top Stories
Charting
Company Search
Watchlist
Market Reports
Market Buzz
Company News
Economic News
New Issues
Broker tips: Bellway, UK banks, Synergy Healthcare
Tue, 14 Oct 2008, 12:10:00
More Chart Options
Related Market Prices
Name
Value
Percent
Change
Bellway
491.00p
-3.44%
HBOS
87.00p
-4.71%
Lloyds TSB Group
156.40p
-6.90%
Royal Bank of Scotland Group
54.80p
-0.90%
Synergy Healthcare
411.25p
-0.00%
Related Articles
London close: Footsie tumbles heavily
Mon, 1 Dec 2008
London afternoon: Stocks steady at lower levels
Mon, 1 Dec 2008
London midday: Equities decline on a broad front
Mon, 1 Dec 2008
RBS offers six-month repossession delay
Mon, 1 Dec 2008
London mid-morning: Miners keep Footsie lower
Mon, 1 Dec 2008
Profit before tax at housebuilder <b>Bellway</b> was ahead of market consensus but the 75% cut in the final dividend was more severe than expected, according to broker KBC Peel Hunt, which remains neutral on the stock. <br /><br />"The provision against land and stock at £130m was at least one-third more than the market expected," KBC analyst Robin Hardy reckons. <br /><br />Hardy expects Bellway's full-year pre-tax profit to slide below £50m next year and earnings per share (EPS) to dive below 25p; earlier today Bellway announced pre-tax profits in the year to end-July of £165.7m, and EPS of 104.2p, excluding exceptional items. <br /><br />"While the balance sheet is not that stressed we do not like the cash generation profile here and feel that under the likely improvements in the 2009 bank lending regime, other stocks have bigger gains to post," KBC said.<br /><br />JP Morgan (JPM) retains its underweight rating on <b>Royal Bank of Scotland</b> (RBS) with a price target of 120p after RBS launched a higher cash call than anticipated. <br /><br />The size of the fund raising, at £20bn, raises questions about increased impairments, JPM says. <br /><br />The US broker estimates RBS's net asset value at 101p which, at current prices, gives the appearance of some upside but "uncertainty surrounding commitment to maintain lending at 2007 levels and high likelihood of further charges ... implies the risk reward is not immediately compelling," JPM concluded. <br /><br />A combined <b>Lloyds TSB/HBOS</b> entity also gets the thumbs down from JP Morgan. <br /><br />Trading on a capital adjusted price earnings ratio (PER) of 10.1 times estimates earnings for 2009, and with a potential government stake of 44% "raises question marks over strategic direction and expecting no merger revenue attrition is a big ask," JPM says. <br /><br />JP Morgan keeps its Lloyds TSB/HBOS target price at 280. <br /><br /><b>Barclays</b> is trying its best to raise money without recourse to the government and JP Morgan believes the success of the fund raising attempt is "vital for the survival of Barclays." <br /><br />"Capital ratios remain stretched and on our estimates there is still a £7bn deficit," JPM said. <br /><br />JPM's price target of 210p for Barclays remains unchanged.<br /><br />Burgeoning start-up costs for decontamination units and higher than expected energy and transportation costs are squeezing margins at <b>Synergy Healthcare</b> more than anticipated.<br /><br />Group net operating margins for the six months ended 28 September are forecast to be about 1% lower than the planned 14.5%, due to a lag between improvements in pricing and the surge in energy costs, Synergy said on Tuesday morning. <br /><br />Teathers, already at the low end of broker estimates with its forecasts, has responded by downgrading its pre-tax profit estimates for the sterilisation and infection control firm in 2009 to £27.9m from £29.9m.<br /><br />It has also downgraded its recommendation on the stock from "buy" to "hold".<br />
©2004-2006 QCK.com
Tax Guides
|
Top 10 Tips
|
Financial News
|
Sitemap
|
Terms
|
About us
|
Contact
