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Broker Spotlight
Broker Spotlight brings some of the more intriguing and topical analyst coverage to centre-stage. The daily column aims to illuminate thoughts and opinions behind the big stories. London is one of the financial capitals of world. The influential and closely followed views of its analysts regularly move markets and split opinion. The Broker Spotlight column arms Proactive readers with the added insight from the often colourful thoughts and headline-grabbing valuations from the City’s analyst community.
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Broker Round-up: Gemfields, Wentworth Resources, Cluff Gold, Providence Resources and Ferrexpo

4:02 pm by Jamie Nimmo

 

Heavyweight broker JP Morgan Cazenove likes the look of coloured gemstone miner Gemfields (LON:GEM).

It has an ‘overweight’ recommendation for the stock and a target price of 44 pence against the current price of 38 pence, up 1 pence today.

The broker highlights the intensifying demand for emeralds particularly in Asia as a catalyst for the stock.

JP Morgan analysts said: “We believe Gemfields has a very strong position in the production and marketing of coloured gemstones that provides a solid foundation for ongoing growth.”

East Africa-focused oil and gas company Wentworth Resources (LON:WRL) has the capital needed for growth, Panmure Gordon believes.

The broker says it’s in a good position to speed up the pace of its exploration and development programme at short notice, following the cash injection from the swap deal with Cove Energy (LON:COV).

The broker is a ‘buyer’ with a target price of 114 pence, which suggests good value at the current price of 40 pence, up 2 pence today.

Seymour Pierce is urging investors to buy shares in West Africa-focused Cluff Gold (LON:CLF).

Its shares have fallen to attractive levels and it has a ‘buy’ stance and a bullish 136 pence target price.

The shares have dipped in the past month but are rallying this week, climbing a further 4 pence today to stand at 69.8 pence.

Broker Daniel Stewart believes that North Sea-focused oil and gas explorer Providence Resources (LON:PVR) could see its share price rise later in the year.

An updated resource estimate expected in the third quarter of this year and a development plan in the fourth quarter should serve as catalysts for the stock.

The share price rose 10 pence, or 1.8 per cent, to 555 pence today, though broker Daniel Stewart reckons the stock is worth much more, setting a target of 1,334 pence.

Shares in iron ore pellet producer Ferrexpo (LON:FXPO) have suffered recently in line with the market due to the stock’s “high beta” nature, according to Seymour Pierce.

“Nevertheless we still believe the company trades below its intrinsic value of 464p/share,” said analysts.

Despite tumbling recently, the share price fought back this week and is up 2.5 per cent today to 209.5 pence.

 

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