Gold miner Randgold Resources PLC(LON:RRS) has been upgraded to a ‘buy’ at Swiss bank UBS.
The Africa-focused group can meet 2016 production guidance of 1.25mln oz, which will mean a strong second half believes the broker.
The market also underestimates the potential for a material lift in the 2017 dividend, says UBS, which adds would clearly differentiate Randgold from its global gold mining peers.
The price target is 9,750p
Peel Hunt has upgraded its target price for the controversial Sports Direct (LON:SPD) to 380p from 200p, reversing its “sell” rating to a “buy”.
The broker has been convinced of the sporting good retailer’s promise to change its ways following the allegation that have soured investors and suppliers alike.
“Amongst all the panto at the Open Day, we sensed a genuine will to change strategy,” it said.
“The market is pricing in further consensus downgrades but we think our EPS numbers now reflect the nadir. Recovery will take time but we see potential for medium-term margin rebuild and thus reverse our stance.”
North Sea oil group Enquest PLC (LON:ENQ) has received good write-ups following a trading update yesterday.
Indeed, UBS rates it as the top oil price recovery play after yesterday’s news that work on the Kraken field is ahead of schedule and under budget.
Macquarie meanwhile has a price target of 60p.
While Enquest remains primarily an oil price play, Kraken first’s oil and growth in Malaysia may propel it upwards into a different category.
Berenbrg is not overkeen on Lloyds Banking Group (LON:LLOY). The operating environment remains choppy and while the dividend yield remains attractive the rating leaves little room for the shares to rise. The price target is 55p.
Liberum has retained its gloomy view on Pearson (LON:PSON) after numbers from US textbook rivals Barnes & Noble and J Wiley.
Book rentals have taken a very significant share of textbook transactions while online offerings are gaining traction. A top sell with a target price of 470p says the broker.
Also in the North Sea, Hurricane Energy (LON:HURR) has completed the testing and logging phase of the 205/21a-7 well at Lancaster.
Encouragingly, management believes that the additional data recovered suggests that the Lancaster field is likely to be significantly greater than the 200MMbbls 2C case reported in its last CPR.
Buy with 26p target says Cantor Fitzgerald.