Proactive Investors - Run By Investors For Investors

Liberum says accept ‘attractive’ offer for Poundland

Poundland store on a UK high street
South Africa's Steinhoff offered 222p per share.

Holders of Poundland Group Plc (LON:PLND) shares should accept the ‘attractive offer’ from Steinhoff, so says Liberum Capital.

“The recommended cash offer is a good result for PLND shareholders and comes at a time when there was more downside risk that upside in our view,” said analyst Wayne Brown.

“The cash offer of 222p is highly attractive and we would advise shareholders to accept.”

In line with the Steinhoff, Liberum upgraded its view to ‘hold’ from ‘sell’ and lifted its target price to 222p from 125p.

Bold calls were very thin on the ground elsewhere in the City on Wednesday, with the vast majority of broker notes maintaining existing recommendations, albeit there were a few notable changes to price targets.

JP Morgan and Berenberg repeated ‘overweight’ recommendations for ASOS Plc (LON:ASC) but lifted their respective price targets to 4,550p and 5,100p (current price 4,491p), meanwhile Barclays has a ‘neutral’ and set a new 4,800p target.

Credit Suisse wrote up chemicals firm Elementis Plc (LON:ELM) with an upgrade, taking its target to 260p from 240, and the Swiss bank repeated an ‘outperform’.

Peel Hunt upgraded Gemfields (LON:GEM) target to 78p from 70p, and it repeated sits ‘buy’ recommendation.

In the downgrades column, Credit Suisse sliced back its view of Virgin Money (LON:VN.) with the new target of 275p, from 379p.

Jefferies, meanwhile, took 75p off its target for Paragon Group of Cos Plc (LON:PAG) which now has a 500p target.

Jamie_55a91591db06b.jpg


Register here to be notified of future PLND 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