Best of the Brokers for 5 November 2015

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Shore Capital kept its “hold” rating on the group, but downgraded its retail earnings estimate for 2016. “Ordinarily, with such a full valuation being applied to activities and our expectations of the company delivering a flat to small decline in profitability, we would be strong sellers,” the broker said. “However, we remain of the view that Primark is currently the most potent retail format in European retail.”

 

FinnCap initiated coverage on the specialist distribution group with a “buy” recommendation, noting that the firm is investing in new growth areas having a carried out a rights issue. While this has held back earnings, the broker added, with the new growth areas of specialist parcel delivery and a click-and-collect service showing encouraging early signs, “we see an attractive investment opportunity”.

 

Canaccord Genuity reiterated its “buy” rating on the insurance group, after the firm warned on full-year profit in its third-quarter results. The main negative was UK Employee Benefits, where trading profit is forecast to dip significantly. The broker noted that JLT was having trouble turning itself around after recently replacing its chief exec but said on a long-term basis the franchise “remains well diversified”.