Broker tips: National Grid, SSE, Scottish Power, PartyGaming, Burberry
Tue 06 Sep 2005
LONDON (SHARECAST) - Lehman Brothers has published a mixed note on the UK utilities sector, upgrading National Grid Transco to 'overweight', while Scottish & Southern Energy was downgraded to 'underweight'.
The broker said National Grid should benefit from the forthcoming price control review, and while its US assets look undervalued at current levels. The price target has been raised to 600p from 480p.
Lehman said Scottish & Southern Energy remains one of the best-managed utility companies but cautioned the premium for the shares remains excessive. The broker slapped a new price target of 885p on the group from 820p.
In a timely note Lehman stuck with its 'underweight' advice on Scottish Power but raised its price target to 450p from 415p saying it is riding high on takeover speculation - which incidentally was confirmed this morning.
Lehman Brothers stuck with its 'neutral' view on the UK utilities sector as a whole.
Separately Merrill Lynch lifted its price target on Scottish Power to 605p from 510p, suggesting that even at current levels E.ON's acquisition criteria should be met.
PartyGaming lost some of its recent sparkle after releasing interim results today as it said the rate of growth in the poker market is moderating.
House broker Dresdner Kleinwort Wasserstein cut its price target to 150p from 210p, noting that its growth outlook now appears to be lower than we initially forecast.
Shares in luxury goods retailer Burberry were flying off the shelves today as Morgan Stanley repeated its 'overweight' advice on the shares and hiked its price target.
The US broker raised its price target to 520p from 485p previously after taking stock of Burberry’s redesign initiative, known as Atlas. Sales growth forecasts have been raised to 8% from 7.5% in 2007 and to 8% from 7.3% for 2008.
Morgan Stanley added that Burberry also has a number of other strong growth opportunities, particularly in the US and China.
Pub outfit Punch Taverns was spilling over today after ABN Amro hiked its price target to 1,040p from 875p on the pubs group.
The Dutch broker said Punch Taverns remains a "key pick" for 2005, as it offers defensive growth and still looks cheap at current
Tue 06 Sep 2005
LONDON (SHARECAST) - Lehman Brothers has published a mixed note on the UK utilities sector, upgrading National Grid Transco to 'overweight', while Scottish & Southern Energy was downgraded to 'underweight'.
The broker said National Grid should benefit from the forthcoming price control review, and while its US assets look undervalued at current levels. The price target has been raised to 600p from 480p.
Lehman said Scottish & Southern Energy remains one of the best-managed utility companies but cautioned the premium for the shares remains excessive. The broker slapped a new price target of 885p on the group from 820p.
In a timely note Lehman stuck with its 'underweight' advice on Scottish Power but raised its price target to 450p from 415p saying it is riding high on takeover speculation - which incidentally was confirmed this morning.
Lehman Brothers stuck with its 'neutral' view on the UK utilities sector as a whole.
Separately Merrill Lynch lifted its price target on Scottish Power to 605p from 510p, suggesting that even at current levels E.ON's acquisition criteria should be met.
PartyGaming lost some of its recent sparkle after releasing interim results today as it said the rate of growth in the poker market is moderating.
House broker Dresdner Kleinwort Wasserstein cut its price target to 150p from 210p, noting that its growth outlook now appears to be lower than we initially forecast.
Shares in luxury goods retailer Burberry were flying off the shelves today as Morgan Stanley repeated its 'overweight' advice on the shares and hiked its price target.
The US broker raised its price target to 520p from 485p previously after taking stock of Burberry’s redesign initiative, known as Atlas. Sales growth forecasts have been raised to 8% from 7.5% in 2007 and to 8% from 7.3% for 2008.
Morgan Stanley added that Burberry also has a number of other strong growth opportunities, particularly in the US and China.
Pub outfit Punch Taverns was spilling over today after ABN Amro hiked its price target to 1,040p from 875p on the pubs group.
The Dutch broker said Punch Taverns remains a "key pick" for 2005, as it offers defensive growth and still looks cheap at current
