On the Move: Northern Rock, Sanofi, ABM Amro
NORTHERN ROCK was up £0.23 to £3.06... Shares rebound on UK govt guarantee - Shares recover some of the gound lost in the last two sessions, after the UK government moved in to guarantee deposits. Goldman Sachs downgrades to sell from neutral, as believes shares will continue to fall as management and regulators attempt to stabilise the business. The company says cuts target to £2.96 from £11.00 to reflect maximum price that currently believes a buyer would pay without generating goodwill, as estimates the company will only just meet its cost of capital in 2009, delivering a 10% ROE.
LONMIN was down £1.18 to £31.71... Credit Suisse cuts numbers on Marikana strike Credit Suisse reduces volume estimates on the strike at Marikana. Lowers EPS for fiscal 2006/07 by c16% to US$2.75 and for fiscal 2007/08 by c19% to US$3.17. Highlights these numbers are significantly below current consensus of US$3.45 for fiscal 2007/08 and US$4.60 for fiscal 2007/08, and there could be some significant adjustments to consensus in the coming months. Rates outperform.
SANOFI-AVENTIS (SNY) was up €0.84 to €60.92... Avian flu vaccine achieves 'high immune response' - the company 's vaccine unit Sanofi Pasteur announces that its work-in-progress H5N1 influenza (otherwise known as 'avian flu') vaccine 'achieved a high immune response at the lowest dose of H5N1 antigen reported to date.' the company believes it could provide 'billions of doses in a pandemic situation', once the vaccine is fully developed.
BOUYGUES was up €0.81 to €58.38... Morgan Stanley downgrades to underweight from equal weight and cuts target to EUR 62 from €64. The company says the company offers considerably less attractive returns than the sector average (14%), on its estimates.
MORPHOSYS was up €2.49 to €43.33... Clinical milestone in Antibody program - the company announces a clinical milestone in its Antibody program. The Investigational New Drug application, resulting from a collaboration with Novartis triggers a payment for the company
BENETTON was up €0.08 to €10.85... To export Sisley to India - the company signed a deal with Tata to launch and expand its Sisley brand in India. During the first six months of 2007 the company 's earnings have grown 40% in India and 35% in Russia.
SAIPEM was up €1.21 to €29.48... The brokers positive; Wins NordStream deal - Merrill Lynch raises target to €33 from €31; reiterates buy. Following positive business update and additional visibility provided by yesterday's LoI from Gazprom to build the NordStream pipeline, broker raises EPS for the company by 3% in fiscal 2007 and 4% in fiscal 2008. The company says stock remains a top pick in the European Oil Service sector. ABN Amro initiates with buy and a target of EUR 32.40. Believes there is substantial margin improvement potential in offshore construction and drilling. the company has been chosen to install the NordStream natural gas pipeline linking Russia to the EU via the Baltic Sea, according to a statement on NordStream's website.
ABN AMRO (ABN) was up €1.16 to €36.27... RBS-consortium closer to takeover of the company - Cheuvreux says as expected the Dutch Ministry of Finance has approved the bid by the RBS-led consortium for the company The broker says this leaves few hurdles left for the consortium. Notes the main one left will be the financing of the acquisition in which both equity and hybrid capital have to be raised. Nevertheless, the likelihood of RBS and its friends being successful has further increased.
AKER KVAERNER was up NOK5.00 to NOK154.00... JP Morgan initiates with overweight - Broker sets target at NOK195.
On broker's 2008-09 P/E estimates, the company is the cheapest of all the services stocks in broker's coverage. The company says this seems at odds with the company 's strong technological edge in subsea hardware and high-end drilling equipment and its strong integrated deepwater model. Thinks the company offers the best combination of durable top-line growth, margin uplift and valuation of its peer group.
VESTAS WIND was up DKK9.00 to DKK367.50... Dresdner Kleinwort ups tgt to DKK500 vs DKK400, keeps buy. Notes unrivalled global distribution platform leaves the company uniquely positioned to benefit from the current wind market boom. Taking into account its internal efforts to realign its production base, improve turbine quality and raise productivity, expects the company to gain market share and expand EBITA margins to 13.5% by 2009.
SOGECABLE was up €0.58 to €25.50... Sharing football rights with Mediapro - the company is unavailable for comment on reports that its Audiovisual Sports unit has agreed to jointly manage football rights with Mediapro. Shares in the company were in decline on reports the company could lose broadcasting exclusivity rights for La Liga football matches this weekend. The the Liga de Futbol Profesional, or LFP, has scheduled all Sunday games to be played at 20:00 CET, one hour before the 21:00 time slot for the company 's PPV Canal+ channel. the company has responded to the dispute over footballing rights by saying the exclusive broadcasting of football matches on its Canal+ channel is 'guaranteed' for the next two seasons. SocGen downgrades to sell from hold, keeps €22.00 target. Asks whether the company is heading for a costly compromise on Spanish soccer rights.
INDITEX was up €0.11 to €43.01... first half results due tomorrow - Ahead of Wednesday's first half results, consensus looks for revenues at €4.085 billion; operating profit at €524 million; pretax profit at €520 million and net income at €381 million. See Broker's Views and News Spain.
TELEFONICA (TEF) was up €0.46 to €19.17... O2 gets iPhone deal / broker changes - the company 's O2 secures apple iPhone deal in the UK. Under the deal iPhones will cost £269 and will be in stores from 9 November, according to Reuters. Credit Suisse ups target to €20.50 reiterates outperform. Stays overweight on the sector on the basis of improving fundamentals and the scope for a further recovery in relative earnings momentum. Morgan Stanley ups target to €21.50 vs €20.00, overweight. the company is amongst its top picks. The broker also downgrades European Telcos to in-line from attractive. Brazil's president Lula da Silva encouraged Spanish business leaders to participate it his €150 billion infrastructure, energy and urban development plan for 2007-2010.
UBS (UBS) was up CHF1.25 to CHF62.15... S&P Ratings revises outlook to negative from stable. Analyst Richard Barnes said 'this action reflects Standard & Poor's view that UBS' performance, particularly its result for the third quarter of 2007, is likely to be significantly challenged by the current market dislocation'. S&P affirms AA+/A-1+ ratings.