Marks and Spencer, Randgold Resources, Partnership Assurance: Best of the Brokers for 6 November 2015
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MARKS AND SPENCER
Canaccord Genuity has changed its rating for Marks & Spencer to “hold” with a target price of 570p, after it was briefly “under review” and previously “speculative buy” at 550p. M&S released interim results on Wednesday that the broker thought were positive with sustainable growth on track, and pre-tax profits (PBT) of £284m, beating expectations of £271m. However the broker thinks margin growth won’t be enough to offset lower international profits and trims PBT forecasts by one per cent.
RANDGOLD RESOURCES
Gold miner Randgold Resources has seen record production (305oz, up 5oz) in the last quarter and strong cash generation, despite pump issues hampering operations. Numis said the group’s other mines had picked up the slack and the miner’s full-year 2015 guidance was on track, with a strong balance sheet, but moved to an “add” rating from “buy” based on price appreciation, and held a 5,000p target.
PARTNERSHIP ASSURANCE
Partnership Assurance, the insurance annuity provider for people with medical conditions, has delivered solid sales performance, up 22 per cent to £109m, and is on track to deliver £200m, according to Panmure Gordon. The broker upgraded to a “buy” rating from “hold” with a target price of 165p. The insurer recently received CMA approval for the merger with Just Retirement. The share price fell when the deal was announced which the broker thinks “illogical” and offers a buying opportunity.