Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Broker spotlight, including Direct Line, Admiral, Zoopla and Intertek

Broker spotlight, including Direct Line, Admiral, Zoopla and Intertek
Shares in Sports Direct shot up as it said results will be ahead of market expectations.

Broker heavyweight JP Morgan Cazenove has its sights on UK insurers and has dialled up Direct Line (LON:DLG) with an upgrade.

It moves the shares to 'overweight' from 'neutral' prevously, while the target is punted up to 349p from 240p.

"UK non-life insurers are facing a tough environment at the moment, with all the profit drivers (i.e. underwriting, investment income and ancillary income) under pressure," says analyst Ashik Musaddi.

But  any hint of rising pricing would be good for any pure play motor insurers such as Direct Line, Admiral, and Esure.

Admiral (LON:ADM) has its target driven upward to 1,388p from 1,134p while the rating remains 'underweight'.

Esure (LON:ESUR) is kept at 'overweight' with  the target lifted to 299p from 280p.

US broker gives property portal Zoopla (LON:ZPLA) a kick today, raising the target to 400p from 269p and repeating a 'buy'.

"In our view, the acquisition of uSwitch has raised the bar with respect to the services offered by property portals and enhanced the customer journey. We also believe that this enhanced offering will be very difficult for its competitors to replicate or match. We expect the acquisition to be significantly earnings enhancing," it said in a note.

On the downgrade front today, Deutsche is downbeat on Intertek (LON:ITRK), downgrading the stock to 'hold' from 'buy'. The target price is also reduced to 2654p from 2725p.

"We believe that there is a considerable opportunity for the incoming CEO, André Lacroix, to effect a degree of cultural change in the business (more focus on cross selling, possible changes to incentive structures) but that this may take sometime to effect and is now partly priced in," the broker said.

Giles_55af4ddca6481.jpg


Register here to be notified of future SAE Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use