Hillary Clinton’s proposals for US healthcare reform will, if she wins, create almost limitless outcomes, according to Citigroup with potential black swan outcomes in the event of a Democratic clean sweep.
“From a legislative angle, we continue to prefer names with either limited part D exposure [US Medicare] or heavier contribution of non-pharma assets."
Centrica offers an attractive dividend yield underpinned by improving earnings and cash flow backed by cost-cutting, a recovery in commodity prices not yet reflected in the share price.
" Politics continues to dog the investment case but we continue to believe that the market is overly bearish" ,says the broker.
The target price is 240p.
Last week, the resource investor reported a 147% increase in royalty income in its third quarter.
Spot prices of coking coal, used in making steel, are up 229% in the year so far and 110% for thermal coal (used, among other things, in generating electricity). The target price goes from 128p from 108p