Broker spotlight - Aberdeen Asset Management, Ashmore, Sainsbury's, Shell and Oxford Instruments


Shares in the investment firm Aberdeen Asset Management (LON:ADN) took a mild biffing after a double downgrade - with UBS at the vanguard.

The Swiss bank went to ‘neutral’ from ‘buy’ on the stock, although, counter-intuitively, it raised its price target 15p a share to 465p.

It points out that despite the recent rash of acquisitions, Aberdeen still derives 60% of its revenues from one fund. 

As a result, it sees risks “skewed to the downside”, while its investment case is heavily weighted to the emerging markets.

Barclays Capital also took out the red pen – going to ‘equalweight’ from ‘overweight’ on Aberdeen and helping to contribute to a 3% fall in the share price.

Fellow fund manager Ashmore (LON:ASHM) also received the once-over from Barclays, which went to ‘underweight’ on the stock from ‘equalweight’.

The highest quality way to invest in the civil aviation industry is via the metal basher Senior (LON:SNR), according the stock pickers at JP Morgan Cazenove.

Initiating its coverage with an ‘overweight’ rating and 400p price target, the investment bank told clients: “We believe the civil aerospace delivery super-cycle is set to continue. 

“As a provider of equipment onto new aircraft, with strong customer relationships and programme positions, we see Senior as ideally placed to benefit. 

“We believe Senior is fundamentally undervalued and see the recent share price pull-back as providing an excellent entry point.”

The reaction to a rather tepid set of figures from grocer Sainsbury (LON:SBRY) was an equally lukewarm assessment of prospects from the broker fraternity with both Deutsche and Cantor reiterating the ‘hold’ recommendations.

Mike Dennis, veteran retail analyst at the latter, had these pearls of wisdom: “The risk now is that we see further pressure on sales from more grocery price deflation before the improvement in consumer real earnings starts to feed through.”

In the wake of the quarterlies last week analysts continued to tweak their estimates for the Anglo-Dutch oil giant Shell (LON:RDSB).

Deutsche Bank remained bullish on the stock, repeating its ‘buy’ advice, but pegged its target price back to £26 a share from £28.

BTG’s (LON:BTG) fan club edged up its valuation of the technology firm the day after results. 

JPMC increased its price target to 830p a share from 760p, while Deutsche moved to 790p from 760p. Both remain respectively ‘overweight’ and ‘buyers’ of the stock.

Meanwhile, the sector’s analyst were taking a more cautious approach towards Oxford Instruments (LON:OXIG) with Berenberg trimming its price target to 1,360p from 1,720p and JPMC going to 1,350p from 1,650p. Their recommendations remain ‘buy’ and ‘overweight’.

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