Panmure Gordon has broken with the consensus of its City rivals and slapped a sell note on outsourcer Capita (LON:CPI)
Impairments, weaker growth, lower quality returns and risky acquisitions all make current rating too high, aid the broker.
Only 10% of analysts are sellers despite recent price weakness, comparatively weak forecast cashflow growth, falling returns and margins, risky attempted acquisitions and asset write downs.
Panmure, though, believes Capita has changed into a fundamentally more risky animal without a sUBSequent de-rating.
Analysts are starting to view Shell/BG (LON:RDSB) as one entity after shareholders in both companies approved the merger.
UBS has a price target of 1,800p and buy rating and said after completion on 15 February there is likely to be a capital markets day 'launch' of new enlarged business early June.
“The quality of the asset base is clear. Shell now has the opportunity to fundamentally re-set strategy and the operating model of the firm.,” said the Swiss bank.
Battered miner Anglo American (LON:AAL) also received a modest price target upgrade from UBS to 290p.
More detail on its "radical" restructuring should come with the 2015 on 16 February with the "Future Anglo" likely to focus on three commodities (platinum, diamonds and copper).
Liberum has looked Rio Tinto (LON:RIO) and expects the top end of its gearing threshold to be tested in 2017. Sell with a reduced target price of 1,485p.
Learning Technologies (LON:LTG) has acquired Rustici for US$26mln (plus up to US$11m deferred) and also a 30% stake in Watershed for US$3mln.
Rustici is a global market leader in digital learning interoperability and has been a leader in the development of universal technical standards for the e-learning industry.
Numis has raised its profit forecasts by 16% to £6.2mln for 2016, while the Civil Service Learning contract, won in partnership with KPMG, provides material upside when it comes fully on stream in 2017.
The price target rises to 39p (was 31p) and ‘buy’ remains the recommendation.