-- adds OPG--
Two brokers have turned positive on integrated oil giant Royal Dutch Shell (LON:RDSA) ahead of its results this week.
Citigroup moves from 'neutral' to 'buy' while Liberum moves from 'hold' to 'buy', pausing only to recommend its clients sell BG (LON:BG.) ahead of the group's assimilation by Shell later this month.
Liberum is less enamoured of BP (LON:BP.), which announced its results this morning. The broker moves from 'buy' to 'hold'.
Elsewhere in the sector it has made the same switch in recommendation fro Tullow Oil (LON:TLW). Nomura, meanwhile, reiterates its advice to reduce any holdings in Tullow and has cut its price target to 150p from 185p.
The return from suspension at a markedly higher level has not stopped BMO Capital Markets from upgrading Premier Oil (LON:PMO) to 'market perform' from 'under-perform' after the energy company clinched a deal to buy E.ON's North Sea Assets.
Away from the oil sector, Deutsche Bank grudgingly acknowledged a strong set of results from telecoms behemoth BT (LON:BT.A) yesterday by nudging up the target price from 430p to 435p. It remains a seller of the stock, saying the UK market risk remains elevated.
Bank of America Merrill Lynch has got off the fence and now recommends purchasing shares in Hikma Phamaceuticals (LON:HIK).
Cantor Fitzgerald reckons low-cost airline easyJet's (LON:EZJ) business has proved resilient.
Trading had been affected by terrorist attacks but bookings have recovered, the broker noted in its review of last week's trading update.
It leaves its earnings forecasts largely unchanged.
“EZJ’s fundamentals remain strong with low gearing and healthy cash generation. However, we trim our TP [target price] to £19 from £20 due to higher capex for new aircraft. The stock is trading on a calendar 2016 PE [price/earnings multiple] of 10x, a 24% discount to its five-year average. The dividend yield is 3.9% and well covered,” Cantor said, as it stuck with its 'buy' recommendation.
Cantor Fitzgerald has repeated its 'buy' rating on Indian power utility OPG (LON:OPG) after the second 150mW unit at its 300mW Gujarat plant came on stream last week.
The announcement should remove any operational concerns about the company and puts total capacity at 761mW, said Cantor. At full output, underlying earnings [EBITDA] should reach £90mln, while the earnings multiple is just over seven times. Buy is the rating with a 134p target.
Finally, SP Angel has chopped its target price for Firestone Diamonds (LON:FDI) from 42p to 28p, but remains a buyer of the stock,
The broker says this year and next will be crucial for the company as it delivers the new plant targeted for October 2016, with the first diamonds expected to be recovered and sold in 2017.
“Project delays may be a blessing in disguise given the weak diamond markets. We have flat price forecast in early years for diamonds from Liqhobong and will wait till auction results come through to incorporate the scope for higher value stones,” the broker said.