Vodafone (LON:VOD) has started a mass market advertising campaign for its broadband product that uses BT’s lines.
Deutsche Bank reckons it’s the first time it’s launched such a high profile campaign for a fixed line –based service.
‘Buy’ with a 270p target price.
The UK engineering sector has sold off heavily since June and is down 18% since its end May peak and 37% from its 2014 peak.
Buy Bodycote (LON:BOY), Vesuvius (LON:CKSN) and Melrose (LON:MRO), says the broker, while Smiths is (LON:SMIN) upgraded to neutral.
Sells are for Spectris (LON:SXS) and Morgan Advanced Materials (LON:MGAM) and downgrade Fenner (LON:FENR) to Sell. IMI (LON:IMI) is also downgraded to to neutral.
Cantor Fitzgerald says the government’s sale of the bulk of its shares in Royal Mail (LON:RMG) leaves the investment case finely balanced.
“Clearly this removes any overhang issues, but we think that the bullish case for RMG is still not clear cut.
“The company's first quarter update in July reported a challenging revenue environment.
But RMG’s valuation is attractive, trading on a calendar 2016 earning s multiple ten times, while the dividend yield is 4.7%, twice covered.
Hold with target price of 500p.
Citigroup has upgraded bookmaker Ladbrokes (LON:LAD) to ‘neutral’ with a raised target price of 110p, though it adds the competition authority investigation into the Gala merger will rumble on for several more months, dampening any need to take a strong view in the shorter term.
Bulk email specialist DotDigital (LON:DOTD) the group has once again produced a strong set of results, said finncap, with profitability up 44% year-on-year, 9% ahead of its forecast.
Cash generation remains strong and our two-year forecast profit growth of 63% remains unchanged. The target price goes up to 45p.
Allergy Therapeutics (LON:AGY) has a good business in Europe, but it is the US opportunity that can transform the hay fever vaccine group according to broker Stifel.
With around 1m allergy sufferers in the US receiving allergy immunotherapy (AIT) for their grass allergies each year and an annual treatment cost of around $2,000 per person, the grass AIT market is potentially worth $2bn in the US.
Stifel sees Pollinex Quattro Grass achieving a 20% market share and Stifel is predicting sales of US$400mln by 2023.
Stifel has started its coverage with a target price of 79p, compared to a current share price of 27p, or about 200% upside.