- Today's Hot Chat Topics
- Member Benefits
- Manage your personalised Watchlist.
- Set up an online Virtual Portfolio.
- Participate in Share Chat.
- See more trades and director dealings.
- Play the Fantasy Share Trading Game.
Share:
HomeShare PricesStock PickerFinancial DiaryUK IndicesUK Industry SectorsCompany LookupShare RisersShare FallersBroker RatingsFinance GlossarySMS ServicesShare ChatFinance NewsBlogsLive PricesShares BookshopFinance ToolsMembers
Latest Share Chat
Premier Oil ShareCast News (PMO)
ShareCast News for Premier Oil (PMO)
| Share Price: 363.60 | Bid: 363.00 | Ask: 363.40 | Change: 0.00 (0.00%) |  | ||||||
| ||||||||||
Broker tips: Prudential, Logica, Premier Oil
Thu, 31st May 2012 11:36
Nomura says that Prudential's acquisition of Reassure American Life Insurance Company (REALIC) from Swiss Re will indeed provide a short-term boost to earnings, but raises some 'strategic questions' for the UK-listed insurance giant.
The broker says that its main concerns is that "it is a closed book transaction that will run off over time (probably over half of the book will run off within the next 10 years). This means that, although it provides a strong short-term earnings boost, this will turn into an earnings drag over the longer term as the book runs off."
"A key question, in our view, is whether Pru will need to make further Admin Re deals in order to replace the reducing earnings going forward and to avoid the earnings drag from the book over the longer term. This begs the question of whether Admin Re is now strategically important to Pru or not."
Peel Hunt has downgraded its rating for technology services group Logica from buy to hold and raised its target price from 95p to 105p following Thursday's bid from CGI.
The broker thinks that the offer is unlikely to be countered as most of the large players in the industry seem inappropriate candidates: "The US players already have strength in European services and Indian pure plays are probably too conservative to take on anything as large as Logica."
Nevertheless, Morland says that the bid "does seem somewhat opportunistic" seeing as though Logica was trading over 100p as recently as March.
UBS has upgraded its rating for FTSE 250 oil and gas group Premier Oil from neutral to buy, saying that the recent underperformance has been 'overdone'.
"Premier Oil has been hit hard in the recent sell-off, and has underperformed the E&Ps [explorers and producers] by 28% over the past three months," the broker said in a research note.
UBS notes that the Huntington and Catcher projects are crucial to meeting these targets, and while the visibility isn't perfect, it believes that both should start on time which would remove a major overhang on the stock.
BC
The broker says that its main concerns is that "it is a closed book transaction that will run off over time (probably over half of the book will run off within the next 10 years). This means that, although it provides a strong short-term earnings boost, this will turn into an earnings drag over the longer term as the book runs off."
"A key question, in our view, is whether Pru will need to make further Admin Re deals in order to replace the reducing earnings going forward and to avoid the earnings drag from the book over the longer term. This begs the question of whether Admin Re is now strategically important to Pru or not."
Peel Hunt has downgraded its rating for technology services group Logica from buy to hold and raised its target price from 95p to 105p following Thursday's bid from CGI.
The broker thinks that the offer is unlikely to be countered as most of the large players in the industry seem inappropriate candidates: "The US players already have strength in European services and Indian pure plays are probably too conservative to take on anything as large as Logica."
Nevertheless, Morland says that the bid "does seem somewhat opportunistic" seeing as though Logica was trading over 100p as recently as March.
UBS has upgraded its rating for FTSE 250 oil and gas group Premier Oil from neutral to buy, saying that the recent underperformance has been 'overdone'.
"Premier Oil has been hit hard in the recent sell-off, and has underperformed the E&Ps [explorers and producers] by 28% over the past three months," the broker said in a research note.
UBS notes that the Huntington and Catcher projects are crucial to meeting these targets, and while the visibility isn't perfect, it believes that both should start on time which would remove a major overhang on the stock.
BC
Premier Oil awarded three blocks in Brazil
Premier Oil has been awarded three blocks in Brazil's 11th Round held in Rio de Janeiro.[16 May '13]
Premier Oil ups forecast for first half of 2013
Premier Oil has forecast first half production to be in the range of 58-60,000 barrels of oil equivalent per day (boepd), compared to 58,400 boepd in thesame period last year.[16 May '13]
Tuesday broker round-up UPDATE
Babcock International: Jefferies increases target price from 1080p to 1250p and maintains a buy recommendation.[14 May '13]
Premier Oil delivers results of gas testing at Matang
Premier Oil has said that following testing on the Matang gas discovery, the structure remains in line with the pre-drill estimate of 100 to 400bn cubic feet.[13 May '13]
London pre-open: FTSE to open unchanged
City sources predict the FTSE 100 will open unchanged from Friday's close of 6,521 following the Bank Holiday weekend.[7 May '13]
Tuesday broker round-up UPDATE
Admiral Group: JP Morgan reduces target price from 1246p to 1108p downgrading to underweight.[7 May '13]
Premier Oil reports successful drill test on Luno II
Premier Oil has reported the successful well test of the Luno II discovery, in which it has a 30 per cent interest.[7 May '13]
London close: FTSE 100 jumps two per cent on stimulus hopes
Markets on the whole shrugged off disappointing data from the Chinese manufacturing sector on Tuesday, as decent corporate earnings and stimulus hopes in Europe pushed the FTSE 100 two per cent higher.[23 Apr '13]
