logo-loader

Broker Round-up: French Connection back in fashion?

Last updated: 14:07 16 Sep 2013 BST, First published: 13:07 16 Sep 2013 BST

no_picture_pai

French Connection (LON:FCCN) may no longer be top of every teenager’s Christmas list, but Numis Securities took a shine to the company on Monday.

The broker upgraded its recommendation from ‘hold’ to ‘add’ as the clothing company behind the FCUK brand reassured it that it is heading in the right direction.

The first-half numbers were not enough to merit a ‘buy’ rating, but the initiatives launched are starting to kick in, it reckons.

Analyst Andrew Wade said: “The initiatives undertaken in the UK retail business are sensible (tighter buy, focus on full price sell through, improved balance of range, cost savings, staff training, active portfolio management) and should be reflected in the quality of range planning and architecture, the brand perception and, ultimately, profitability. 

“While there remains plenty to do, we believe that French Connection remains a brand with global appeal and, operationally, is now moving in the right direction.”

Westhouse Securities reckons a farm-out deal would be the major catalyst for Petro Matad (LON:MATD) shares this year, although even without a deal the company can afford to complete this year’s planned work programme.

But, a farm-out will have a part to play for funding work beyond this year, according to analyst Jamal Orazbayeva.

“Depending on the farm-out result, the company will have to address its funding requirements going into 2014/15. Potential drilling will most likely happen in 2014 at the earliest,” the analyst said in a note.

Range Resources (LON:RRL, ASX:RRS) is in a “strong position” to benefit from the improving fiscal landscape for oil and gas firms in Trinidad and Tobago over the next three years, broker Old Park Lane thinks.

It comes after a budget statement on September 9, which revealed measures specifically rewarding those companies with accelerated exploration and development programmes.

Under the proposals, companies will be able to recover 100% of their exploration costs during the first year from 2014 to 2017.

From 2018, they will be able to recover 50% of their exploration costs in the first year, 30% in the second and 20% in the third.

For development work, the proposed incentives allow for 50% recovery of cost in the first year, 30% in the second and 20% in the third compared to the current system which mirrors recovery for exploration costs.

“After a long period of production decline in Trinidad, there has been a substantial expansion of E&P activity in Trinidad in recent years and this is expected to continue as the government improves the fiscal terms available to companies investing in upstream oil and gas activities,” says analyst Barney Gray, who rates Range a 'buy'.

“The news from Trinidad is unambiguously positive and Range is in a strong position to benefit from the improving fiscal environment over the next three years.”

Noricum Gold (LON:NMG) has hit bonanza grades from its first hole at the Rotgulden gold and precious metals project in Austria.

The assays showed significant gold and silver values from the hole, which was sunk to 57 metres, including 6m at 17.4 grams per tonne gold and 27.8g/t silver from 9m.

SP Angel described the drill results as exciting, adding: “We are looking forward to more laboratory assay results of drilling to be completed at the Rotgulden mine.”

Enegi Oil (LON:ENEG) has confirmed its focus will be on the development of marginal fields, with its ABTechnology partnership at the vanguard.

ABT uses giant buoys rather than full-fledged platforms to extract oil – allowing it to keep costs down and therefore transforming the economics of fields.

The first project for Enegi and ABT will be farm-in on the Antrim Energy-owned Fyne Field in the North Sea.

Craig Howie, analyst at Shore Capital, said: “Today’s update reiterates recent progress by Enegi whilst providing a clear indication of future plans; we see particularly strong scope for highly accretive reserve additions as a result of the joint venture with ABT.”


Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

1 hour, 46 minutes ago