Africa Oil Corp's (TSX:AOI) second-quarter update showed all its assets performing strongly, said Stifel, albeit impacted during the quarter by a planned 1-month maintenance at Akpo.
“This business continues to generate good free cash; over the next 5 years, we forecast ~$800 million of free cash, which results in an EV payback period of ~6 years.
Stifel analysts expressed approval of JLEN Environmental Assets (LSE:JLEN)' 51% stake disposal on a portfolio of six gas-to-grid anaerobic digestion facilities to Future Biogas for £68.1 million.
"It is good to see JLEN making progress on its disposal process, and we think further sales are likely in the months ahead," said analysts.
Melrose Industries PLC (LSE:MRO, OTC:MLSPF), the aero parts group, has received a meaty price target from US bank Citi, which is looking long-term at the cash-generating potential.
In the short-term, underlying profits are nudged up by 2% after the first half though cash flow drops due to higher restructuring and LTIP-related costs.
Citi has renewed its buy rating on housebuilder Bellway PLC (LSE:BWY), citing its “good foundation for growth”.
The group “remains well positioned to benefit from a housing market recovery with the ambition to drive significant volume growth over the (medium term), underpinned by a well-invested landbank and healthy balance sheet”, said Citi analysts.
Peel Hunt retained its buy rating on Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) plc stock after the solutions provider to the leisure and entertainment sector adjusted its full-year guidance.
Although certain new projects for Accesso Horizon in the Middle East have been delayed (alongside main customer Six Flags in the US seeing lower recent footfall), Peel Hunt pointed out that accesso “does not perceive increased risk to the overall completion of these projects or their overall contractual value”.
Rank Group PLC (LSE:RNK)'s results were comfortably above market estimates, cash positive and with the dividend reinstated, with the momentum continuing into the current year, notes Shore Cap.
Ahead of today’s update, Shore Cap had forecasted operating profit to increase to £53m (EPS: 7p), with the momentum at the start of the current financial year supporting these forecasts. Doubling the second half's outturn results in £50 million annualised operating profit.
ATOME PLC (AIM:ATOM) jumped 10% to 87p as it completed the free trade zone contract for its Viletta project in Paraguay.
House broker SP Angel said it was a positive update that demonstrated the support and commitment of the country's government to the Villeta project.
Investment bank Stifel sees “significant upside” for Chariot Ltd (AIM:CHAR, OTC:OIGLF) shares should Chariot’s Anchois-East well off the shore of Morocco move to investment approval as planned.
Chariot recently raised £5 million in a share sale and another £1.5 million in an oversubscribed offering to support the Anchois project
Panmure Liberum has reaffirmed its buy rating on Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF), maintaining a target price of 13.5p on the back of several positive developments within the company’s operations, particularly in the Williston Basin and Utah.
The Williston Basin portfolio has shown consistent growth, with production rising to 1,226 boepd in the second quarter of 2024.
Legal & General Group PLC's (LSE:LGEN)'s recent results contained a couple of areas of potential concerns, suggests Canadian bank RBC.
Annuity margins and the continuing reliance on non-core asset portfolio (CIU) are the areas that worry RBC, with annuity volumes driven by price cuts and more entrants into what is becoming a crowded market.