Clarkson PLC (LON:CKN) saw its shares bob higher on Tuesday, having sunk in the previous session after its 2018 results, as JPMorgan Cazenove upgraded its rating for the shipping services firm to ‘overweight’ from ‘neutral’.
With Clarkson’s shares dropping over 8% on Monday, the US broker only reduced its target price to 2,787p from 2,876p helping the shares to rise to 2,385p, up 5.3% on the day.
READ: Clarkson shares sink as cautious comments on 2019 outlook offset smaller-than-expected decline in 2018 profit
In a note to clients, JPMorgan’s analysts said: “Clarkson’s FY results were around 4% ahead of our estimates, with Broking strength offsetting ongoing Financial weakness and head office IT spend.”
They added; “The medium-term outlook continues to improve, though management expects a higher H2 weighting in FY19 due to macro uncertainty and the recent Brazilian dam collapse.”
The analysts said they have left their pre-tax profit estimates and target price for Clarkson “essentially unchanged, with IFRS-16 having a negligible impact.”
They concluded: “We upgrade to Overweight (from Neutral) following yesterday’s dramatic share price reaction.”