logo-loader

Broker spotlight - GKN, TUI Travel, Carnival and Thorntons

Published: 10:37 23 Dec 2014 GMT

engine_car_350

On a very thin day for broker news, GKN (LON:GKN) was in focus with Investec downgrading the engineer and Numis repeating its positive call on the stock.

Investec analyst Rami Myerson, went to ‘hold’ from ‘buy’, saying the “risk-reward profile” was fully reflected in the current share price. 

He sees headwinds such as weaker emerging markets and pricing pressure in the automotive sector strengthening. 

The analyst’s valuation of GKN increased to 350p, though this is just 5p more than the current share price.

Numis, meanwhile remains more upbeat on GKN’s potential, rating it ‘add’ with a 400p price target.

It said the woes of its smallest division, Land Systems, are being allowed to overshadow the potential of the remainder of the business. 

“As the most cyclical and therefore lowest value business within GKN this should not undermine the value being created elsewhere with auto performing well and aerospace underlying performance improving despite defence market softness,” said analyst David Larkam.

Elsewhere, Deutsche Bank obviously had a case of the Christmas blues as its attention turned to the holiday firms.

Its first port of call was TUI travel (LON:TUI), which has merged with its German parent to create the world’s largest leisure and tourism company.

Repeating its ‘buy’ and tweaking down slightly its price target to £13.20 a share from £13.87, Deutsche reckons the growth potential of the combined group is far greater than if the two TUIs had remained separate.

Looking at the cruise line sector, the German bank believes there is plenty more steam in the revenue and earnings recovery at Carnival (LON:CCL), which it rates ‘buy’ with a £30.40 price target.

Finally, Investec has put its recommendation on the chocolatier Thorntons (LON:THT) under review after it sounded the profit alert earlier.

The shares shed 23% after the group said the major grocers had ordered less stock than anticipated.

The earnings miss will put pressure on cash flow, analyst Nicola Mallard said; however there should be no knock-on impact on the firm’s debt covenants. 

The analyst said she had suspended her ‘buy’ recommendation, price target and forecast on hold until she has further details.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

2 hours, 56 minutes ago