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Broker Roundup Part 2 including Globo, London Mining, Anpario, International Power and Marks & Spencer

Last updated: 15:14 30 Mar 2012 BST, First published: 19:14 30 Mar 2012 BST

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High street electronics goods retailer Dixons (LON:DXNS) had its price target increased today to 19 pence by Citigroup following a sector re-rating.

Citi had previously targeted a price for the company's shares of 10.5 pence.

Similarly, also on sector re-rating grounds, the wall Street bank has increased its target price for another well known retailer- Marks and Spencer Group (LON:MKS).

The TP is now 365 pence, up from 320 pence previously.

In other coverage, Goldman Sachs upgraded International Power (LON:IPR) to 'neutral' from sell.

Elsewhere, analysts at City heavyweight JPMorgan Cazenove have reiterated their "overweight" stance on London Mining (LON:LOND), following the company’s full-year results yesterday.

The results were in line with expectations and the company reported steady progress in the current year so far, the investment bank said.

London Mining said the year was a transformational one, in which it made the critical move from developer to producer in Sierra Leone, where it owns the Marampa iron ore project.

JP Morgan Cazenove has updated its estimates to reflect the company’s latest development plan as communicated earlier this year which involves slightly lower production in 2012 (1.5 million tonnes of ore  vs 1.8Mt previously) but higher production from 2013 onwards (5 Mtpa at full capacity vs 3.6Mt previously).

“We remain Overweight but lower our price target to 400 pence a share from £520 based on a slightly lower net present value and the dilutive effect of the January placing.”

In addition to the progress with Marampa, first production from London Mining’s La Niña coking facilities in Colombia got underway recently.

In Greenland, where it owns the Isua project, the company recently published its landmark bankable feasibility study for the planned mine, which revealed some fairly robust economics and gave the project a net present value of US$2.4 billion.

It is seeking strategic partners and project-based funding to develop its iron ore mines in Saudi Arabia and Greenland.

Elsewhere, finnCap issued a note on agricultural additives business Anpario (LON:ANP).

The company has increased its exposure to the lucrative Chinese market by buying natural animal feed additive products supplier Meriden Animal Health for £4.125 million.

The acquisition is expected to be immediately earnings enhancing, said Anpario today.

The purchase prompted broker finnCap to raise its target for Anpario to 140 pence from 120 pence (current price: 83.5 pence).

FinnCap analyst Duncan Hall estimates that Meriden will contribute revenues of £4.1 million and an EBITDA of £0.5 million in the current year. For a full year, Meridan should enhance group pre-tax profits by £0.75 million on sales of £5.5 million, based on its performance in 2011.

Hall now expects the enlarged business to post pre-tax profits of £2.7 million for the full year and earnings per share of 10.2 pence, up from last year’s £2.1 million and 8.4 pence respectively.

The analyst also noted that, according to his calculations, Anpario finished the year with £4.5 million in the bank, which means the acquisition will place no strain on the balance sheet, especially since Meriden will come with surplus cash.

Meanwhile, Globo's (LON:GBO) transformation into a major international mobile technology firm was confirmed by "stellar" growth last year, broker Daniel Stewart today.

The broker has a 'buy' rating on the stock and a punchy target price of 133 pence, up from 127 pence previously, representing an upside of more than 400 per cent from the current share price (current price: 24.5 pence).

Earlier today, the group posted record revenues and profits, which were ahead of expectations, and said the growth trend looked set to continue.

The firm's reported impressive revenue growth -  up 46.6 per cent year-on-year at €45.31 million for the 12 months to December 31.

Pre-tax profit showed a 160.3 per cent increase, to €12.05 million (2010: €4.63 mln), the analyst noted.

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