Best of the Brokers for 21 December 2015
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Engineering firm Fenner has been given a “sell” rating from analysts at Panmure Gordon, due to further weakness in commodity-related markets. The current 141p share price has been given a target of 100p. The firm is now forecast for a pre-tax break-even for 2016. Panmure reckons the firm’s dividend will be suspended for two years as net debt rises from £138m to £170m by the end of 2017.
Automotive and aerospace company GKN’s “buy” rating has been reiterated by analysts at Haitong Research due to the knock the share price took earlier in the year not recovering along with the outlook for the Chinese automobile market. GKN has been given a fair value of 365p on a share price of 301p currently. Analysts reckon car sales in China will pick up in 2015 along with demand for SUVs and electric vehicles.
Analysts at Liberum have reiterated their “buy” rating for oil industry supplier Petrofac despite lowering their target price to 1,012p, from a current share price of 789p. Analysts think the guidance for 2015 is disappointing but are hopeful of improved revised forecasts in 2016, spurred by new orders and clearing of the construction backlog. The firm is going through a difficult period but analysts are confident Middle East clients offer upside benefits.