Proactive Investors - Run By Investors For Investors

Broker spotlight: Cineworld, Carillion, Man Group ..

Broker spotlight: Cineworld, Carillion, Man Group ..
It is Daniel Craig's last film as James Bond

Canaccord has latched onto Bond-mania with the release of Sceptre, the latest film in the long-running franchise, on Monday to repeat its ‘buy’ rating on cinema chain Cineworld (LON;CINE).

But it is the less racy expansion opportunity for the chain in eastern Europe that has got the broker’s juices running.

An analysts’ trip to Romania confirmed the commanding position in a growing market held by Cineworld in a country where there is little competition said the broker.

Subsidiary Cinema City operates 21 of 34 multiplexes in Romania with plans to take it to 40 multiplexes in the next five years.

Cineworld also makes more money per pound of investment in Romania that anywhere else.

The 40 multiplex target is realistic, believes Canaccord, as Romania has a population of 20mln and there are 23 cities with a population of over 100,000.

James Bond and Star Wars excitement meanwhile has led to problems coping with the demand.

Canaccord said Cineworld had confirmed its website had crashed along with its rivals due to the surge of interest, with as many ticket requests for Star Wars in a day as normally come in over three months.

Buy with a 620p target price says the broker.

JP Morgan has just upgraded the the UK non-residential construction market, which are in recovery mode with meaningful opportunities in both the building and infrastructure markets.

Greatest upside lies with Interserve (LON:IRV)  (24%), Carillion (LON:CLLN) (16% and upgraded to ‘Overweight’ from ‘Neutral’), and Kier(LON:KIE)  at 14%.

Balfour Beatty (LON:BBY) is fairly priced in the risk/reward of the turnaround strategy.

Jefferies has commented on the Liberty/CWC takeover moves, where the broker sees mostly in CWC's US$8bn tax assets.

On a standalone basis, the price target is 76p but it a merged scenario this rises to 100p.

Jefferies is also keen on hedge fund manager Man (LON:EMC), which gets an upgrade to ‘buy’.

Net flow into lower net fee but more persistent institutional funds should be value creative over time and give Man a higher quality income stream.

The price target is 187p (from 169p).


Register here to be notified of future CINE 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 2019

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