Broker Roundup Part 2 including: Medusa Mining, Goldstone Resources, Afferro Mining, Anglo AsianReported by Proactive Investors on Thursday, 12 July 2012 (on July 12, 2012)
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Its caps may be broken, but Britvic (LON:BVIC) is not, according to Barclays Capital.
The soft drinks company may have had to recall its Robinson’s Fruit Shoot line due to faulty caps, but the broker still sees value in the shares after a dramatic fall in the price.
“Management credibility is back at all-time lows, but we believe Britvic is not fundamentally broken,” said analyst Simon Hales.
The broker admitted, however, that the drinks manufacturer, which also owns Tango, J2O and is the licensed bottler for PepsiCo products, faces problems including the £25 million it has had to strip off its profits after Fruit Shoot’s nozzle was deemed a choking hazard.
Hales reiterates his ‘overweight’ stance but like brokers across the board, has cut his target price to 350 pence per share from 440 pence.
Investec is a ‘buyer’ given the attractive valuation, while Morgan Stanley, Deutsche Bank and JP Morgan Cazenove all retain a neutral stance on the stock.
Another firm that will have to work hard to keep its reputation intact is security firm G4S (LON:GFS).
It was revealed today that it has been unable to reach the 23,700 staff it said it would supply to provide security services during the London 2012 Olympics.
Just two weeks before the Opening Ceremony, the company has been forced to draft in 3,500 military personnel to cover its back.
UBS reckons the company is at risk of reputational damage after a botched Olympics job that could hamper its chances of securing future contracts.
The Swiss broker says the key now is to limit the damage, regardless of the risk posed to sales and profits on Olympics work.
UBS filled up its target price on alcoholic drinks company Diageo (LON:DGE) to 1,850 pence from 1,700 pence, as it believes the Johnnie Walker owner will hold value share in US spirits, despite losing volume share in value brands and bourbon.
It’s drinks all round for JD Wetherspoon (LON:JDW) as Deutsche Bank tops up its target price by 40 pence to 455 pence after the pub chain got a boost from the Jubilee celebrations and Euro 2012.
The champagne is on ice for the oil majors as Nomura wasn’t so bullish on the sector’s prospects.
The broker downgraded the target prices of Shell (LON:RDSB), BP (LON:BP.) and BG Group (LON:BG.) due to fundamental risks to near-term oil prices, even though their shares have underperformed this year.
Down a division or two, now is a good time to buy Medusa Mining (LON:MML, ASX:MML) shares, according to City broker Fairfax.
Mining analyst John Meyer said in a note today that all was going well at the firm's flagship Co-O mine in the Philippines and that the expansion towards 200,000 ounces per year was going to plan.
House broker Optiva recokons the current price of gold explorer Goldstone (LON:GRL) offers new investors “considerable upside potential at this near basement level entry point”.
The broker has a target price of 15 pence but a forthcoming resource estimate upgrade should lead it to nudge its target price higher, the broker said. Shares were little changed today at 3.95 pence.
Cameroon iron ore explorer Afferro Mining’s (LON:AFF CVE:AFF) operational update contained little new said Panmure Gordon, but it was reassuring that progress across the company's exploration projects is in line with expectations. Talks with potential strategic partners are underway and the shares rose 2 pence to 48.25 pence.
Anglo Asian Mining (LON:AAZ) looks good value at 37.3 pence according to Fairfax considering current production of around 50,000 ounces per year and forecasts for that to grow to over 80,000 ounces annually.
Links:  Full news story
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