On the Move: Soc Gen, Deutsche Boerse, Royal Dutch Shell
STANDARD LIFE was up £0.08 to £3.12... first half earnings ahead of consensus Reports first half EEV operating profit of £353 million, +71%; new business contribution £151 million, +66%; EEV £5.911 billion, +5% (271p per share); div 3.8p. The company says it is on track to meet target of 9%-10% return on embedded value in 2007 and increasing thereafter.
KAZAKHMYS was up £0.31 to £13.30... Buys ENRC stake, posts solid results - the company proposes to a acquire an 18.8% stake in ENRC PLC to gain exposure to chrome, iron ore, alumina, coal and additional power assets in Kazakhstan. Estimated cost of the acquisition will bw US$810 million. the company posts interim basic and diluted EPS of US$1.70 (+26%), and EBITDA excluding special items of US$1.323 billion (+22%) on revenues of US$2.8 billion (+22%). Numbers are better than expected. the company announces a share buyback program of up to US$400 million, a special dividend of US$235 million and an interim divdend of US$64 million.
LLOYDS TSB was down £0.01 to £5.46... Merrill Lynch downgrades to neutral from buy, with a fair value of £5.81. The company says it is adopting a more cautious approach to the company 's wholesale division. Cuts EPS by 4.5%. Argues the relative rerating of the stock has become stretched and does not see it moving any further.
SOC GEN was up €3.21 to €122.65... Merrill Lynch upgrades to buy and adopts a €147 target, though it cuts fiscal 2008 EPS estimates by 6% to €12. Likes the company 's asset-light equity-oriented CIB franchise compared to the fixed-income focus of BNP. Higher free cash flow, lower 'plain vanilla' wholesale lending, better emg. markets exposure and 4.5% yield all support stance. In further broker news, UBS cuts target to €128 from €150, keeps neutral.
SUEZ was down €0.55 to €39.81... 'No risk' of Env. asset takeover - CEO - the company CEO Gerard Mestrallet is quoted by Reuters as saying there is 'no risk' of a takeover on its to-be listed Environment arm in the wake of Suez's planned merger with GDF. In further news, The merged GDF Suez entity will maintain its stakes in Spain's Gas Natural and Agbar, reports Cinco Dias.
DEUTSCHE BANK was up €2.59 to €94.11... CEO expresses satisfaction with business development - Speaking at a banking conference in Frankfurt, Ackermann said turbulent market conditions during August inevitably affected the company , notably in sales & trading and corporate finance. But adds that the company is not exposed to further deterioration in the US subprime mortgages across its books. On the broker front, UBS cuts target to €99 from €120, reiterating neutral.
DEUTSCHE BOERSE was up €0.71 to €81.40... Equities trading up 109% in August on the company 's Xetra system and on the Frankfurt trading floor to €266.1 billion. Trading on derivatives platform Eurex rose 64% year-over-year to €175 million contracts.
AIR BERLIN was up €0.32 to €13.91... Up on talk of Air France-KLM hovering - with neither company having confirmed that negotiations are under way.
BANCA ITALEASE was down €0.06 to €17.72... Possible buying opportunity? - Local press reports that France's BNP and UK's Barclays are buyers of the company on the market ahead of this Saturday's AGM (first call 8 September, second call 10 September). the company will post second quarter07 results on Friday, 7 September. Cheuvreux is not expect any major surprises, as the parent company already reported on 30 July: loss on derivatives by the parent company was €688 million. Expects good performance from Factorit. Rates underperform with a target price of €13.00.
ROYAL DUTCH SHELL (NL) was up €0.69 to €29.16... Attractive at these levels - brokers - UBS upgrades to buy from neutral with a target price of £23.
The company says weaker markets have impacted the share price and hence now sees attractive upside. ING raises target to €30.20 from €29.20, maintains hold recommendation. The company says there exists notable DCF headroom for the company , albeit in line with potential market upside on a 12 month view. While free cash flow is attractive, with a capital-intense rejuvenation process ongoing, remains cautious of profitability, particularly if the oil macro softens. the company has signed an offtake agreement with PetroChina International for the supply of liquified natural gas (LNG) from the emerging Gorgon project in Western Australia.
OMX was up SEK1.50 to SEK245.00... FI to initiate investigation - Dagens Industri reports that the Swedish FSA will investigate the company to establish whether the exchange operator used correct methods to fend off the bid from Borse Dubai.
TRYGVESTA was up DKK3.00 to DKK439.00... Wins DKK85 million arbitration case - Ruling relates to reinsurance bought by the company during 1994-1999. The decision will have a DKK41 million effect on P&L and the gain will be booked in third quarter07. The ruling is final.
TELEFONICA was down €0.10 to €18.21... Citi downgrades / Telco close to clearance - Citigroup downgrades to hold from buy and cuts target to €19.00 vs €20.00. Thinks the upgrade cycle may be coming to an end. Adds the list of potential deals is now large, and thus the investor day on 11 October carries some risk. According to the press, the Telco consortium will shortly receive clearance to buy a 23.6% indirect stake in Telecom Italia after Anatel appealed against the request by Carlos Slim, owner of America Movil, to review the documents. If granted, the Brazilian regulator could place the issue on the agenda for tomorrow or Thursday, suggesting that clearance could be given by the end of the week. The much discussed European deals for the iPhone are expected to be announced on Wednesday at the IFA event in Berlin in conjunction with some new iPods.
REPSOL YPF was down €0.15 to €26.30... Sonatrach ends j/v / Brokers cut targets - the company and Gas Natural say Sonatrach has ended the Gassi Touil j/v. The two Spanish companies say they regret the decision and will fight the decision in international courts. Cheuvreux says it would expect the two Spanish companies to receive some compensation, but notes it is bad news for the company since the project meant access to gas reserves. Credit Suisse cuts target to €26.40 vs €27; underperform. Thinks the end of the j/v increases the risk of an acquisition in the upsteam business. ING cuts target to €23.40 from €25.10, sell. The company says cut is due to less optimism on downstream operations, weaker natural gas prices in Argentina, and higher costs for the group.
SWISS LIFE was up CHF3.00 to CHF291.50... posted solid first half figs, WestLB upgrades - first half net earnings beat expectations, coming in at CHF635 million, up 21% year-over-year. the company says it will set new financial goals in December as it expects to achieve its profit target of CHF1 billion for 2008 a year early. WestLB upgrades to buy from add on the back of what it regards as a strong set of first half figures. Sticks to CHF365 target price.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.