Headlining with the words of Warren Buffett - “be greedy when others are fearful” - Jefferies upgraded Royal Dutch Shell (LON:RDSB) says the oil super major is a ‘buy’.
Analyst Jason Gammel, whilst upgrading from ‘hold’, still has reservations about the price Shell is paying to acquire BG Group (LON:BG.) but nevertheless expects the resultant oil company to be among the most resilient in the sector.
In a note, he said: “post-transaction we believe significant further value can be added through divestitures/share repurchases and further cost savings and synergies.”
Jefferies new price target for Shell is 2150p, which is some 30% above the current price of 1642p.
RBC Capital has upgraded Randgold Resources (LON:RRS) to ‘outperform’ from ‘sector perform’.
Analyst Jonathan Guy, in a note, said: “the company's balance sheet, low operating costs and capex profile place it in a strong position relative to the peer group.”
That apparent positivity aside, RBC’s new price target is actually lower than before at 4500p versus 5000p previously; the current price is 4150p.
N Brown (LON:BWNG), owner of ‘plus size’ catalogue clothes retailer SimplyBe, was upgraded to ‘buy’ from ‘hold’ by N+1 Singer.
Numis improved its view of engineering firm Wood Group (LON:WG.) to ‘buy’ from ‘hold’.
House builder Barratt Development (LON:BDEV) was cut to ‘sector perform’ from ‘outperform’ by RBC.
Jefferies meanwhile downgraded British Land (LON:BLND) to ‘underperform’ from ‘buy’.
Similarly UK property peers Capital & Counties (LON:CAPC) and Derwent London (LON:DLN) were also downgraded by Jefferies to ‘underperform’ and ‘hold’ respectively.