Share Name Share Symbol Market Type Share ISIN Share Description
Upstream LSE:UPS London Ordinary Share KYG7393S1012 ORD 0.25P (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 1.625p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
6.3 0.4 21.9 0.1 2.23

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master rsi: Sirius Minerals in top 10 AIM share tips for 2017 By Lee Wild | Tue, 10th January 2017 - 12:29 Sirius Minerals in top 10 AIM share tips for 2017 Small-caps are back and outperforming all the main domestic indices. The junior market has risen by 20% since the 23 June, compared with a 16% rally for the FTSE 100 (UKX) and just 8% for the FTSE 250. Investors have made big profits, but analysts at WH Ireland have identified the 10 stocks they think will make big bucks in 2017. WH Ireland's selections span a variety of sectors and all have "potential to shine in share price terms over the coming twelve months". It's worth noting that the broker did the same thing last year, generating a return of 16.8% between 1 January and 30 December 2016. Star tip, Spain-focused uranium explorer Berkeley Energia (BKY), more than doubled in value. "Whilst equity markets may not be as generous in 2017, we continue to believe the smaller company universe will offer their usual helpings of excitement in the year ahead," writes WHI. Sirius Minerals Analyst Paul Smith, joint house broker at Sirius Minerals (SXX), is tipping shares in the future potash miner to triple after a difficult few months. In what was a pivotal year, Sirius completed its feasibility study, successfully undertook an ambitious first phase of funding and received its final permit. First-class contractors move their diggers into North Yorkshire this year to begin work on the potash project and Britain's largest mine. It will take five years to build, but the mine should be capable of generating £1 billion of cash profit every year. "The current share price in no way reflects the value in the company going forward - currently slightly below the placing price [20p] at which large institutions and hedge funds invested," says Smith, who points out that the current market capitalisation reflects only cash held by the company, with "little or no value placed on the project itself". "We anticipate a recovery in the share price as Sirius begins construction and the mine becomes a reality. We maintain our 'buy' recommendation and 60p price target." CareTech Analyst John Cummins likes CareTech (CTH). The social care services firm made "considerable progress" in 2016, with two big acquisitions, strengthening the management team, and growing profits. "Whilst the shares have performed well, recent sector transactions illustrate the fact that the valuation multiples currently ascribed remain undemanding," argues Cummins. "We believe that the group remains well positioned to continue its strategy in targeting double-digit growth, backed by the £300 million-plus freehold property valuation and near-3% dividend yield, positioning CareTech well for the year ahead." "Underpinned by the recent transactions in the sector, we raise our share price target to 435p, which would equate to a FY 2017e enterprise value/earnings before interest, tax, depreciation and amortisation (EV/EBITDA) multiple of 11x." Berkeley Energia Berkeley Energia makes the list again. Ongoing momentum at its Salamanca project will see construction progress further, with orders for first pieces of major equipment in. "This is the stand-out uranium project development globally, benefitting from low capital and operating costs and all of the opportunities of being located in a stable democracy in a region of high uranium demand and low domestic production," explains Smith. "2017 should be a year of positive news flow for the project, against a back-drop of improving sentiment in the uranium market, and we maintain our 'buy' recommendation and 128p price target." WYG Project manager and consultancy WYG (WYG) finished 2016 in style with strong half-year results. Despite this, the shares still trade on a 30% discount to peers. Deals in the sector continue to be done at 8-12x EV/EBITDA. WYG trades on just 6.8 for 2018. Watch for further revenue growth and higher margins, contract wins and cash generation, says analyst Nick Spoliar who thinks the shares are worth 172.5p, 26% more than the current price. Caledonia Mining Caledonia Mining (CMCL) has already had a cracking 2017. Its shares are up as much as 50% to 120p, but Smith pencils in a target price of 146p as this year "sets the scene for the high impact of the new developments from 2018 onwards". The company should complete central shaft development at its Blanket gold mine in Zimbabwe early next year, increasing gold production further. Output is tipped to increase by 205 in 2017 to 60,000 ounces and the firm should increase its cash pile, despite further heavy investment. UK Oil & Gas In 2016, UK Oil & Gas (UKOG) effectively "unlocked an entirely new UK onshore petroleum play, which is, in our opinion, the most significant development for decades for the UK onshore oil & gas sector," according to WH Ireland's Brendan Long. WHI keeps its recommendation and target price 'under review' pending a comprehensive assessment of UKOG's assets ahead of a change in analyst coverage. However, the outlook in 2017 is "catalyst rich". Long expects UKOG to advance the appraisal of its Horse Hill discovery, drill the Broadford Bridge exploration prospect, "a Horse Hill look-alike", and drill a conventional target, Holmwood, that is also prospective for fractured Kimmeridge Limestone. Jarvis Securities Jarvis Securities (JIM) remains a 'buy', and Spoliar nudges up his price target by 25p to 450p. He thinks 2017 holds a range of positive potential catalysts for the stockbroker, driven by strong trading volumes, potential client administration wins, and a possible increase in interest rates. "Given the backdrop of positive trading, we expect share price progress to continue as we move towards the full-year results on 16 February," says Spoliar. Pennant International Computer based training firm Pennant International (PEN) has had a great run already, but demand for the complex, high-specification products it supplies continues to grow. Having only partially recovered from a significant derating in 2015, Spoliar thinks a price/earnings (PE) ratio of just 11 times, a big discount to peers and 20% less than Cohort (CHRT), is unfair. "The company is ambitious to grow and while mergers and acquisitions remains a possibility, the more-than-50% expansion in facilities further enables the organic opportunity," says Spoliar, who tips the shares up to 100p from 78.5p currently. Redhall This could be a game-changing year for Redhall (RHL). Hot on the heels of strong full-year results in December, the engineer could be a big beneficiary of the Government's decision to progress with the Hinkley Point C nuclear power plant. "We rate the shares with a 'buy' recommendation and 12.5p share price target [10p currently], which has scope to move higher should the group secure major nuclear new build contracts," says Cummins. LightwaveRF Finally, WH Ireland analyst Eric Burns has a speculative 'buy' for us. LightwaveRF (LWRF), which makes a range of intelligent dimmers, radiator valves, sockets and sensors, strengthened its balance sheet with a £2 million fundraise last year. "This gives it the resource for a concerted marketing push for its extensive range of products encompassing heating, cooling, lighting, ECO and power in a fast expanding market," says Burns, who believes a strategic tie-up with larger partners could be transformational. "Whilst forecasting Lightwave has been difficult in the past and we have no estimates for the current year as yet, there is material speculative upside in the share price." Summary of stocks mentioned EPIC - Company Name ------ Market Cap - Price - Recommendation SXX Sirius Minerals PLC £780.8m 18.8p Buy CTH CareTech Holdings PLC £215.4m 336.0p Buy BKY Berkeley Energia Lim £155.5m 59.3p Buy WYG WYG PLC £94.4m 136.5p Buy CMCL Caledonia Mining Corp £59.6m 109.0p Buy UKOG UK Oil & Gas Invest £40.3m 1.6p U/R JIM Jarvis Securities PLC £38.7m 352.5p Buy PEN Pennant International £27.0m 78.5p Buy RHL Redhall Group PLC £20.3m 10.1p Buy LWRF LightwaveRF PLC £6.4m 16.5p Speculative Buy
master rsi: Top 10 small-cap share tips for 2017 - By Harriet Mann | Mon, 9th January 2017 - 14:09 Just nine days into the New Year and investors already know the key theme for 2017: uncertainty. Granted, it was similar last year, but with big decisions made back then going against mainstream predictions, and the stockmarket refusing to bow to doomsayers' forecasts, it's likely to be a wild ride. Prime Minister Theresa May will trigger Article 50 within three months, followed by two years of negotiations. Crucial elections in France, Germany and possibly Italy could also threaten the future of the EU. In America, Trump's presidency becomes official next week. As new leader of the free world, will he be as protectionist as feared, or far more conciliatory in practice? Despite known unknowns, equity portfolios could still do well, as evidenced by the rally since Trump's election. "Even in tough economic circumstances, companies with good ideas, innovative technology, clever business models and strong management can generate their own luck and continue to thrive," says Raymond Greaves, head of research at finnCap. That's the basis for the small-cap broker's stock ideas for 2017. Here are finnCap's 10 for 2017. Allergy Therapeutics With a quarter of the UK suffering from hayfever at some point in their lives and 10-30% of the global population afflicted, the European allergy immunotherapy market (AIT) is worth $0.8 billion (£0.66 billion). In the US it is worth more than double that, at $1.7 billion. Look at the potential addressable market and its value surges to around $9 billion. This backdrop is perfect for pharmaceuticals business Allergy Therapeutics (AGY). The allergy vaccination group's profitable European operation is busy gobbling up market share as it gathers financial momentum. Revenue is expected to grow 23% in 2017 thanks to foreign exchange tailwinds, and gross margin should climb 260 basis points to 73.6% as volumes grow on a fixed cost base. Before crucial research and development costs and general operational spend, profit should jump by a third to £19 million, finnCap analysts reckon. Outside the flagship European business, Allergy also houses a US division that is trialling the Pollinex Quattro treatment. While the group continues these studies finnCap thinks it will remain loss-making. Trading at a chunky 45% discount to its peers, with a profitable business and healthy pipeline, the valuation looks unjustified. finnCap believes the shares are worth nearly double at 40p, which would give them a market value of £235 million. Capital Drilling Using the downturn wisely by increasing capacity in its rig fleet, Capital Drilling (CAPD) is well prepared for the next phase of its cyclical story. Despite low activity levels, it's managed to stay profitable and has used its cash pot to pay out above-average dividends. Further contract wins should drop straight to the bottom line. Largely exposed to African gold mining contracts, the swing in sentiment towards the yellow metal underpinned the group's share price turnaround, further supported by the bounce in other minerals like copper and iron ore. Not only are 80% of its revenues multi-year contracts - so there is turnover visibility - but nearly half its customers are cash generative mining giants with strong balance sheets. Capital shares surged by nearly 200% last year from their low of 20p in January 2016, but are still changing hands for less-than half their previous peak. Luckily for Capital, geopolitical risk is unlikely to ease in 2017, so gold should benefit from its safe-haven status, although a rise in US interest rates could weaken the price somewhat. An 85p target price gives the shares 42% potential upside from their 60p share price. Fulcrum It's been six months since finnCap initiated coverage on utility company Fulcrum (FCRM), and the analysts have already upgraded forecasts twice thanks to meaty margins. Management has both eyes on costs, so this momentum should continue, but there's also scope for revenue growth following entry into the electrical connections market. The group is the only independent national provider of gas and electricity connections services in an £800 million market typically characterised by poor service levels. Its focus on quality of service should set it apart. FinnCap reckon the shares are worth 22% more at 69p, underpinned by high return on capital, improving margins, strong cash flow and solid balance sheet. With £12.5 million net cash, the group could look at investing in its pipeline to further support its income. For now, the dividend policy has been changed to a cover of 2 times earnings, while the interim payout doubled. GB Group A high-quality, cash generative provider of ID data solutions, GB Group (GBG) is a sitting duck for bigger global industry players. Managed by an experienced team, GB can show off long-term double-digit organic revenue growth from recurring sources, further supported by careful acquisitions. There is no denying that data is the key economic resource of the 21st century, so with the global market for online ID data intelligence services expanding rapidly and as GB Group has excellent margins, high cash conversion ratios and a 1% yield, finnCap is certain the group will do well in 2017. There will be a leadership change in April as chief executive Richard Law retires after 14 years, but there is little concern over his successor's ability. It's not a cheap, undervalued stock by any means - at 283p GB still trades on around 30 times forward earnings. But analysts are confident in the high security and the quality of the provider's earnings, and believe the shares are worth nearly a quarter more at 350p. Gem Diamonds It's not been easy for Gem Diamonds (GEMD), but the miner has navigated weak diamond prices and operating issues at its own facilities well, remaining profitable - before exceptional costs - during the upset, maintaining its dividend. Prices have finally mustered up some energy after slumping in 2015 and trading sideways last year. Larger diamond recoveries should start coming through at Gem's Letšeng mine in Lesotho, which will hike up average prices, and its Ghaghoo mine in Botswana should be able to operate at cash even until diamond prices improve. Of course, there is always the risk the market for exceptional diamonds collapses, but finnCap doesn't see this happening any time soon. The ugly duckling of the diamond miners, Gem fell 13% in 2016 and is loitering near its one-year lows, while Firestone (FDI) surged 176%, Petra Diamonds (PDL) rallied 85%, and Gemfields (GEM) climbed 20%. With a target price of 185p, magpie finnCap reckons the shares have 69% of upside to unlock. H&T Former pawnbroker H&T (HAT) has spent a good five years consolidating in the oversupplied pawnbroking market and has now reinvented itself as a high street challenger, offering financial services to customers that want face-to-face contact. These new products have good momentum - the personal loan book grew at an annualised rate of 120% in the third quarter and now represents 17% of the total loan book. At 260p, the shares trade on an undemanding 11.5 times forward earnings, with a 10.4% return on tangible equity and 1.21 times price/tangible book value. As most of its peers with a clear growth trajectory would be worth around 50% more, finnCap reckons the shares will climb to 320p as its underlying momentum is unveiled. Hurricane Energy Oil explorer Hurricane Energy (HUR) made huge operational progress in 2016, derisking the pilot and horizontal wells and the resource at its Lincoln exploration well in the North Sea. The industry backdrop has firmed up too, with OPEC's decision to finally cut production setting the scene for a more positive period for oil prices - especially for those companies with fixed balance sheets and reset cost bases. There's more exploration upside to unlock as we venture through 2017, argues finnCap - the Halifax well resource base could increase by 250 million barrels - and the specifics of its field development plan is to be hashed out: there should be multiple share price catalysts throughout the year. After a couple of tough years, many smaller oil companies are still undervalued, but, as sentiment returns, finnCap reckons the shares could climb over 80% to 91p. Ideagen Providing highly regulated industries with software that specialises in enterprise governance, risk and compliance, Ideagen (IDEA) has a strong record of coupling organic growth with strategic acquisitions, and delivering on its forecasts. There is now another certainty in life in addition to death and taxes, says finnCap: compliance. With momentum behind the software group, earnings are expected to jump by over 20% this year, which could underpin a leap in its share price to 78p - 16% higher than current levels. Ideagen's market value has already surged from £11 million in 2012 to over £110 million, which should attract bigger investors. RM Group Unloved for a number of years, education software, services and resources company RM Group (RM.) has struggled as a result of its shift away from OEM hardware and Building Schools for the Future (BSF) government contracts stifling growth. School budget tightening also hit sentiment and the stock is now "extremely cheap", trading on an enterprise value/cash profit multiple of 6 times. But with data from the Department for Education showing spend per pupil actually rising 2% year-on-year, positive news from peers and the group in line for a small currency tailwind - a fifth of its earnings are generated overseas - finnCap reckons the tide will change in 2017. Valuing its three divisions, RM Resources, RM Results and RM Education, finnCap reckons the shares are worth a quarter more at 169p. Victoria Carpets Operating in a highly fragmented industry, carpet-maker Victoria (VCP) is gearing up for a highly active year of M&A. It's expected to reveal a £40 million budget for such transactions, which will go hand-in-hand with good organic growth, strong cash generation, low risk operations and a compelling valuation. Each one of its seven previous acquisitions have been earnings enhancing. Of course, Brexit risks to the economy are very real, although management could use sterling's weakness to their advantage to gain pricing power. finnCap reckons the shares could run 22% higher, giving them a price target of 440p.# PETRA DIAMONDS LTD 159.50p -0.37% GEM DIAMONDS LTD 107.75p 2.13% FIRESTONE DIAMONDS 50.25p 2.55% GB GROUP 294.00p 1.38% RM 136.75p 0.55% H&T GROUP 265.00p 1.15% GEMFIELDS 49.50p -1.00% ALLERGY THERAPEUTICS 23.75p 10.47% VICTORIA 360.00p -2.04% IDEAGEN 69.00p 2.22% CAPITAL DRILLING LTD 56.25p -3.85% FULCRUM UTILITY SERVICES LTD 62.50p 5.93% HURRICANE ENERGY 52.50p -0.47%
master rsi: Why housebuilders offer 30% upside - By Harriet Mann | Wed, 4th January 2017 - 17:54 The reward for taking the plunge into risky equities sometimes looks too good to miss. Prime minister Theresa May's imminent triggering of Article 50 has clouded the horizon for housebuilders, certainly, but the sector's tasty dividend yields, strong cash generation and 25% return on capital could mean 30% upside for share prices, the number crunchers at Deutsche Bank reckon. While Britain's decision to leave the European Union came as a surprise, the real shock came from the stock market reaction. To reflect that, the analysts at Deutsche have adjusted their numbers to reveal significant untapped upside potential, with forecasts returning close to pre-Brexit levels. Pre-tax profits forecasts for 2017 have doubled, with 2018 numbers up by half and 2019 estimates up 20%. But the sector is priced at just 1.3 times net tangible asset value (NTAV), which falls to 1.2 times in 2018. This "overplays" any risk to future earnings, says analyst Glynis Johnson, especially with return on capital employed (ROCE) worth up to three times its cost of capital. Not only do the blue-chips trade with a yield over 6.5%, but their stream of free cash flow give scope for future upgrades - look to Barratt (BDEV), Persimmon (PSN) and Taylor Wimpey (TW.), says Johnson. The mid-caps are flirting with yields of 4.5%, which will provide added support to valuations. With new ministers in charge of housing and a new White Paper due on our desks any time now, the sector could be in line for a fresh bout of volatility. But investors should keep their heads and buy the dips, adds the analyst. "We believe any weakness in share prices around this time should be used as a buying opportunity with the sector likely to demonstrate steady reassurance through the year with its continuous cycle of trading updates." Admitting the sector trades "relatively homogeneously", Deutsche has just upgraded McCarthy & Stone (MCS) to 'buy', joining Barratt Development, Berkeley Group and top pick Taylor Wimpey. Losing some of its shine, Bovis is cut to 'hold' as operational hiccups start to dent confidence. Highest yielding blue-chip Taylor Wimpey looks like it has the most to gain over the next few months, with a target price of 239p, implying 56% upside. It's also the highest yielding stock on the FTSE 100, boasting 8.7%. "This meaningful, well covered yield in combination with the reassurance on future profitability and cash flow that its strong strategic land bank offers should become further appreciated in 2017 as investor nerves on the Brexit impact on the sector are proved to be overstated," says Johnson. McCarthy is next in the pecking order with its target price of 211p suggesting the shares are worth 31% more. Investors have been wary of McCarthy's cautious customer base and lumpy completion timings since its IPO, which has weighed on sentiment. But Deutsche reckons the shares are are "too cheap", especially as it continues to demonstrate its higher margin model and progress on its growth strategy. Its recent 45% slump - the sector's down only 20% - has taken the shares 10% below their IPO price, which has the Deutsche magpies upgrading the shares to 'buy'. Barratt is trading below its sector average with a P/TNAV of 1.2x for 2017, which Johnson also flags as "too cheap". Barratt's strategic land bank is on the small size and its exposure to Greater London is certainly higher risk, but the housebuilder should lead the sector with its return on capital, thanks to its shorter landbank and expertise in public sector land. Not only does the 7.3% dividend yield turn heads but investors could untap 31% of upside. The final 'buy', Berkeley, could be hit hard by changes to tax and mortgage regulation, the impact of stamp duty and Brexit negotations. But future completions in the run up to 2018 all have legally exchanged reservations, which eases most short-term concerns. Armed with a 7.1% yield and 20% return on equity potential, its 1.6 2018 P/NTAV again looks too cheap to Deutsche. It's share price could grow by nearly 27% if Johnson is correct, pencilling in a target of 3,559p. It wasn't all good news in the 'buy' portfolio, however, with Bovis Homes given the boot. The cheapest in the sector, Bovis is the value play and is on track to realise nearly 30% of upside, but Johnson can't shake nerves relating to recent profit warnings. Management has promised to increase the dividend each year, but it's not enough to convince investors to take the plunge, especially as they are already wary of the sector. The shares are downgraded to 'hold'.
master rsi: 2016 in review: An unexpected tale Six share tips for value investors in 2017 - By Richard Beddard (Money Observer) | Thu, 29th December 2016 Six share tips for value investors in 2017 This is the second year I've used my Decision Engine, a share-ranking process that identifies good long-term investments, to select three growth shares and three income shares at prices that probably undervalue them. The Decision Engine process doesn't consider dividends. It focuses on the fundamental drivers of profitability and value: the strength of a company's business, its management and share price. To qualify as an income selection, a share must meet an additional criterion. Dividends paid out in the company's most recent financial year must yield an above average return on the current share price - higher than the median dividend yield for UK shares, just under 3%. Three of last year's selections, Dewhurst (DWHT), Science (SAG) and Portmeirion (PMP), are repeated this year. Goodwin (GDWN), an engineering company, manufacturing automation leader Renishaw, which saw a strong rise in its share price, and Castings (CGS) all miss out this time. Value-based growth Science Share price: 145p | Earnings yield: 8% | Dividend yield: 2.8% Last year, Science changed its name from Sagentia to reflect the fact that acquisitions have turned it into a group of four consultancies. It employs hundreds of scientists and technicians to do research and development for other companies and provide them with advice, serving an increasingly broad range of industries. Having improved its own performance a decade ago by taking a more commercial focus, Science can probably do the same for the consultancies it has acquired. Solid State Share price: 420p | Earnings yield: 8% | Dividend yield: 2.9% For a small company, Solid State's (SOLI) Steatite subsidiary makes a wide range of products. Solid State Supplies, another subsidiary, distributes even more. It's a manufacturer and distributor of electronics, specialising in rugged computers, batteries and communication systems. It makes most of the ticket machines you see ticket inspectors lugging on railway trains. Manufacturing or customising these products is a specialised business. The company requires accreditation to handle dangerous materials and sensitive information, which also narrows down the competition. Like Science, it's growing by acquisition too. Dewhurst Share price: 665p | Earnings yield: 10% | Dividend yield: 1.% Though Dewhurst depends on construction activity, it's proved resilient in tough times, and has grown fairly steadily since the current generation of the founding family took charge in the 1980s. Dewhurst principally manufactures lift components, most famously push-buttons, but it's moving with the times, assembling control panels that incorporate touchscreens, and hall lanterns required by modern systems that direct people to the next available lift. It also supplies keypads for ATMs. Value-based income Next Share price: 4,950p | Earnings yield: 9% | Dividend yield: 3.2% In common with many other fashion retailers, by its standards Next (NXT) is having a tough year. Despite new store openings, it's going to struggle to increase revenue in the year to January 2017, and profit is likely to contract by a few percentage points. That, and perhaps wider concerns about the competition, knocked the share price into value territory. Next doesn't deserve to be there. It's highly profitable with a formidable mail-order operation that it's bringing online. XP Power Share price: 1,730p | Earnings yield: 6% | Dividend yield: 3.% XP Power (XPP) makes power converters similar to the common-or-garden converters in computers that convert alternating current to direct current, but designed especially for use in industrial and medical equipment, where reliability is essential. Originally a distributor, XP Power took control of the product by designing and manufacturing its own converters about a decade ago, informed by its close relationship with equipment manufacturers. It has opened modern factories in China and latterly Vietnam, where costs are low . Portmeirion Share price: 800p | Earnings yield: 8% | Dividend yield: 3.8% Portmeirion is having a particularly difficult year in South Korea, its third biggest market, where it sells almost as much pottery as it does in the UK, its second biggest. Even the US, where Portmeirion is prospering and earns over a third of revenue, will not save the company from a rare contraction in profit in 2016. Portmeirion has enduring brands, though. Botanic Garden, popular in South Korea and the UK, was launched in 1972, while Spode Blue Italian celebrates its 200th anniversary this year. Strong finances and a prosperous track record imply shareholders can hold in confidence for the dividend and a subsequent return to growth.
master rsi: SXX 21.125p = Very level today on the share price but slowly the buys are taking over the order book, still plenty of shares for sell on the offer side, so I do not expect to change YET. Now there was a post on III giving a good detail of the stock from "1328745" ...... I'd just like to make it clear that I'm not an employee of Sirius Minerals as some have assumed. I'd also like to answer your question in relation to why I believe that the current share price doesn't reflect the 'shovel ready project' value. The share price immediately before the launch of stage 1 financing (37p) in some part factored in the expectation of successful financing. The 20p placing price of course doesn't include any element of 'shovel readiness' as the institutional investors aren't funding a shovel ready project. They're funding a great idea with mineral rights, planning consents, project plans etc. Without that funding it's not going to be shovel ready. Of course the share price was going to converge with the placing price as private investors sold shares to take up their open offer allocations. Institutional investors aren't going to be picking any shares up in the low 20's though until those two resolutions are passed and the project is genuinely shovel ready. Now it isn't. If those resolutions aren't voted through then they get their placing money back – no additional risk due to the uncertainty of private investor behaviour. Buying shares on the open market now at a similar price to the placement price is a risk too far until that vote goes through (even though the placing was oversubscribed at 20p). Once it does, the re-rate starts. In theory, based on the 37p share price immediately before stage 1 financing launch and the 20p placing price, the share price should be 29.5p when the new shares start trading. This was detailed in the circular. That's still very much on the low side though as the 37p only partly reflected the shovel ready value so I'd expect it to climb quite quickly beyond that. Remember that figures of 15p – 20p/share have been forecast for a long time for the equity raise. The link below shows the figures from Sirius Mineral's DFS and Liberum's own figures – albeit before the capital funding reduction was announced. The model's most optimistic setting allowed for 30p/share but the default was 15p. Shore Capital's research note on the 27th May used 20p/share. hxxp:// And no, I don't work for Liberum either!
master rsi: Oil, Gas Roundup Stratex International (LON:STI) has entered into a service agreement with Goldstone Resources Ltd, in which it holds a 33.45% interest. Under the terms of the agreement, Stratex would provide technical services to support Goldstone for a monthly fee of £1,750 plus VAT as well as a further fee in respect of any specific work streams, including but not limited to project management and analysis of results from exploration programmes. * * * SOCO International (LON:SIA) non-executive director Marianne Daryabegui has stepped down from the board following the expiry of her initial contract term this month. This is due to her employer now limiting its employees' participation as non-executive directors. The board thanked her for her excellent service and for her invaluable contribution to the company during her tenure of office and wishes her the very best for the future. The board has particularly valued and benefited from her independent thought and objectivity along with her extensive experience in oil and gas corporate finance. * * * The sector's biggest risers were Empyrean Energy (LON:EME) and Borders & Southern Petroleum (LON:BOR) - up by more than 59% and over 34.4% respectively in late trading. The biggest fallers were Gulfsands Petroleum (LON:GPX) and Solo Oil (LON:SOLO) - down by 8% and more than 4.3% respectively. At 4:07pm: (LON:AUR) Aurum Mining PLC share price was 0p at 2.58p (LON:BOR) Borders Southern Petroleum PLC share price was +0.67p at 2.87p (LON:CHAR) Chariot Oil Gas Ltd share price was -0.07p at 8.81p (LON:EME) Empyrean Energy PLC share price was -7.25p at 1.75p (LON:ENQ) EnQuest Plc share price was -1.87p at 29.88p (LON:GKP) Gulf Keystone Petroleum share price was -0.02p at 1.32p (LON:GPX) Gulfsands Petroleum PLC share price was -0.25p at 2.88p (LON:INDI) Indus Gas Ltd share price was +2.38p at 487.38p (LON:PET) Petrel Resources PLC share price was 0p at 6.13p (LON:RKH) Rockhopper Exploration PLC share price was -0.37p at 27.63p (LON:RPT) Regal Petroleum PLC share price was -0.02p at 3.73p (LON:SIA) SOCO International PLC share price was -1.5p at 138.75p (LON:STI) Stratex International PLC share price was +0.1p at 1.9p (LON:XEL) Xcite Energy Ltd share price was +0.16p at 1.66p
whites123: MAYA : Mayair. 2 trades of 5000 shares go through (These are not destined for share buyback) and the result is, NMS tightens up and increase of 8% showing. Folk... DYOR etc, but it really is a coiled spring waiting to pop. The company has an approved mandate to buy back 10% of stock at an average price of £1.42. (£5,500,000) all stock bought below means the top price payable goes up. MAYA : Mayair. Very limited PI interest showing in MAYA (Mayair) still, but with just 2 small PI trades showing of £3,700 total the share price has risen some 8%. The company has an approved mandate to spend over £5,500,000 on share buy back program. Its a squeeze of epic proportions. Do some research people... Im like an over excited kid as I have not seen this situation for many a year. MAYA : Mayair Close to £5,500.000 still to spend on share buy back program. Averaged out that equates to over £1.40 per share, but all those bought lower means the upper price to pay can well exceed that marker. Tripling of the share price is easy once stock is in demand. Its a squeeze of epic proportions in the waiting. And yet another RNS from MAYA showing a further share buy back. Each and every time the rns comes out the price increases. Yesterday just 2 purchases. 1 from a PI buying 2,500 shares and the other purchase was a share buy back by the company. They have the mandate to buy approx a further 4 MILLION shares back. The share price will explode... Anyone else here excited about MAYA? (Mayair) They want to buy back 4,247,500 shares (10%) for a maximum of £5,755,750 They have already bought back 340,000 shares for £205,611 So they still have to buy back 3,907,500 shares with £5,550,139 They can pay up to 142p (£5,550,139 / 3,907,500) to acquire the outstanding stock but for every share they buy below 142p, they can pay more than 142p to complete the buy-back, so the price should keep stepping up. The objective of the buy back seems to be to get the share price up. This could triple from here. 19th Oct -2016 RNS today showing they bought back more shares.. In a lightly traded stock like this they have the mandate to buy back almost 4,000,000 more. Where will the share price be by then? Many many multiples of todays price is my best guess.
master rsi: Banks are 'most attractive' trade right now By James Sym of Schroders | Fri, 14th October 2016 - 13:33 Banks 'most attractive' trade right now To our minds an investment in European banks represents potentially the single most attractive opportunity in our asset class. It is that very rare thing in the post quantitative easing (QE) investment world: a "fat pitch" or, for those unfamiliar with baseball parlance, an easy ball to hit. This will appear an incongruous statement. Banks have been the dogs of this investment cycle and readers will no doubt be familiar with many of the well-worn threats to the industry. Anyone doubting the wisdom of an investment in this sector is certainly not alone; our analysis suggests nearly nine out of ten professional investors in Europe are underweight the sector. To state the obvious, in a sector so unloved, given these stocks are trading way below fair value, a subsequent increase in their share prices would be incredibly painful for the many portfolios with little to no exposure. Why then do we take the other view? Our investment theses typically take place in three steps. Firstly, identify why the shares trade as they do. In other words, what's the problem? Secondly, identify why the key inputs have to change. And thirdly, when these initial conditions change, how much money could you make? Banks trade on ultra-cheap valuations To start with then these stocks are somewhere between very and outrageously cheap. For example, one of the better northern European banks might typically offer a 6% dividend yield. Venture to Italy and one can find dividend yields in the double digits. Not bad if you have spare cash for investment in a world where interest rates are 0% and over half of all European government bonds globally yield less than 1%. But why do banks trade so cheaply? Almost by definition it's because the market views the current level of profitability as unsustainable. There are the threats that make good headlines such as litigation and regulation, as well as the vague notion that new technology somehow renders the banking model obsolete. But there is one overriding, pernicious threat that has dominated the discourse around banking boardrooms across Europe over the last couple of years. And that is zero (ZIRP) and then negative interest rate (NIRP) policy from the European Central Bank (ECB). Monetary policy has hurt banks' profits There is no doubt that the alphabet soup of ZIRP/NIRP/QE has damaged banking profitability, and for the duration these policies are in place it will continue to do so. For those lucky enough never to have had the misfortune of trying to digest a bank's financial statements, it's perhaps enough to observe that since Mario Draghi announced QE in January 2015 forecasts for banking sector profits are down by over 20% and share prices by more than 30%. So we've identified the problem - excessively loose monetary policy. However we think these excessively loose monetary policies are currently under review - and rightly so. Why? Most obviously, they have done very little to stimulate demand and inflation as they were designed to do. Consider that Japan has tried ZIRP for 20 years and in the West it's approaching a decade. And economic growth has been virtually non-existent. As an aside I respectfully suggest the neo-classical economists' models, which tie low rates to booming economies, might need a rethink. Unintended consequences More alarmingly from our own experience we are seeing more and more often how counter-productive these policies are for generating economic growth. For example a recent meeting with one of Europe's largest banks confirmed that because of their low share price (which is a function of low rates and consequently low profits) they are instructing their individual business units to restrict lending to only the most profitable, lowest risk loans. This is not great if you are a small business with a new product to launch or a domestic industrial company with a factory to build. Make no mistake: this is deflationary and it is counterproductive. No wonder then we have the rise of political alternativists across the continent: Marine Le Pen, Podemos, Cinque Stelle, Alternative fur Deutschland, Freedom Party to rattle through the five biggest eurozone economies. The great collective wisdom that is represented by Western democracy is flexing its muscles. Self-preservation is a very powerful force when the elites are confronted with a policy choice: witness the recently changed rhetoric on austerity and fiscal stimulus. Policy change as inflation returns But what's the catalyst? What forces the policymaker's hand? The glib answer is it doesn't matter because the majority of banks trade below book value, which is the stockmarket's way of telling them to shrink. Given that 85% of all credit in the European economy is funded by the banks, it's obvious this policy is unsustainable and counterproductive. However, there is another, shorter term factor that will give central bankers cover to declare victory and move to a more balanced approach and that is the return of inflation. In the next one to two years inflation is likely to come back as the oil price has stabilised. Most models suggest a 1.5% to 2% headline reading by 2018 which is pretty much the objective of the ECB. While the rhetoric around fiscal policy changed at the beginning of this year, the rhetoric about changing monetary policy has just begun. So it must happen. Bond yields should rise. In this highly distorted and manipulated market they are the wrong price. Small change in rates = big impact on profits So to the third and final key question: why does this matter for bank shares? What's the upside? We can cut this a number of ways. For a country like Spain where the profits of the banking system are fairly quick to recognise the impact of a change in rates, an increase of 2% on bond yields (so for example German 10 year Bunds moving from -0.2% to +1.8% yield; not exactly outrageous and only back to 2014 levels) would be a more than 50% profit upgrade. Given they start very cheaply, we would expect at least this much back in share price terms plus the dividends. Or we could look at where the bank sector traded when bonds were last at these levels: that would again give more than a 50% return for the sector overall. Finally we might take a more fundamental approach and conduct an analysis of what the future dividend stream would be worth today if it proves sustainable. This would produce around 200% upside in a world of low growth with inflation near target levels. Conclusion: when our scenario of higher-but-still-low rates and normalised inflation comes to pass, these shares should fly. Higher quality banks likely to be the winners A final word on stock picking. While it is true the sector as a whole is cheap, we think there is little point deviating from investing in the very strongest banks. In fact some companies have been able to grow revenues even in this difficult environment. Those that have the biggest headwinds are ceding market share to the winners and there is more than sufficient upside in these winning stocks to keep us interested. It is true also that there is elevated political uncertainty across Europe so we see little benefit in ‘bottom-fishing' (i.e. buying the very cheapest banks). In summary then we can see why in a world of low rates the investment community has steered clear of banking stocks. However rising interest rates are just a matter of time and the impact for banking share prices could be very material indeed, with returns perhaps measured in multiples not percentages. Given our analysis you will be unsurprised that while nine out of ten funds are underweight, we have one of the highest weightings to financials generally, and banks specifically, across all European equity funds. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
master rsi: 15 stocks with substantial upside - By Interactive Investor | Thu, 6th October 2016 - 15:16 15 stocks with substantial upside With the FTSE 100 (UKX) near an all-time high and economic data strong, the UK's reaction to Brexit has shocked many City pundits. But, as we edge closer to "B-day" - or at least when Article 50 is triggered next year - and continue to negotiate the terms of how we leave the union, uncertainties persist. In response, broker Barclays has tweaked its Top Pick portfolio, which it reckons can deliver 23% upside. "The subsequent unprecedented monetary reaction from the Bank of England, the benign and ongoing positive data surprises, and the corporate world's rapid move to head off panic and promote the benefits of weaker sterling have subdued volatility and restored the uneasy equilibrium between uninspiring earnings growth, late-cycle dynamics and a lack of investable alternatives which seem to continuously loop back to equities as the 'last man standing'," says the Barclays team in a meaty 50-page note. Underpinned by cheap valuations, Barclays is "cautiously" confident equities will continue to "grind higher" in the fourth quarter, preferring the cyclical sectors consumer discretionary, financials and industrials. Their portfolio of 28 European top picks has 23% potential upside, according to Barclays, and offers a secure 3.2% yield. The energy sector has the most profit potential, while power & utilities have the least upside. Boasting of average earnings per share growth of 17.5% and trading on a price/earnings (PE) multiple of 13.2 times, the portfolio is cheaper than the European index, which trades on a multiple of 14.4. The portfolio has an average return on equity of 22%. Below, we detail the investment case for the 15 London-listed members of the portfolio, which also includes the European quote for consumer groups Unilever (ULVR) and Ahold Delhaize (AHOG), Société; Générale (GLE) and industrials SAFRAN (SAF), BMW (BMW), Vastas Wind Systems, Vinci (DG) and AENA (A44). Retailer Luxottica Group (LUX), tech groups SAP (SAP), Nokia (NOKIA) and Orange (FTE) and Swedish miner Boliden (BDNNY) also made the list. Making way for the new additions Vinci, WPP (WPP), Société; Générale and Unilever, Barclays kicked out ASOS (ASC), Grifols, REX (REX), Linde (LIN) and ING (ING). graph 1 Imperial Brands (3,927p) Target price (TP): 4,400p - Upside: 12% Imperial's (IMB) improving organic sales momentum, profitability and cash generation should underpin double-digit dividend growth over the medium-term. As a sub-sector, tobacco's high barriers to entry and protected profit pool positions it well against risks seen elsewhere in Staples, and Barclays reckons Imperial's margins will continue to outperform, especially in the US. There are some short-term pressures: UK competition, losing a PMI distribution contract and EU regulatory costs. But with its brand migration strategy ahead of target, cost efficiencies on track and currency headwinds set to turn into a benefit, things should get better. Its share of the attractive US market has also stabilised over the last year, with investment to step up a gear. "IMB is trading on a CY 2017E PE of 14.2x, but we believe the c.25% PE discount of Tobacco to Staples in Europe is overdone," say the analysts. BP (473p) TP: 600p - Upside: 27% Barclays has tipped BP shares up to £6 for over three months now, although a lot has happened to confuse the investment case. Restating its bullish view for the oil giant, BP (BP.) trades on 10.8x Barclays' 2017 earnings per share (EPS) guidance, a discount to Shell's (RDSB) 12x. BP has protected its dividend throughout the collapse in oil prices, and the shares now trade with a 6.5% yield, compared to Shell's 6.8%. Repeating its 'overweight' rating, Barclays reckons BP's investment story lies with its imminent production growth, better margins, better efficiency and an ability to grow the portfolio without an acquisition. With oil prices now expected to trade above $50 a barrel in 2017, cash flow should increase by $4.5-5 billion. We covered the story yesterday, read it here. Ophir Energy (79.17p) TP: 125p - Upside: 58% Concerns over the quality of Ophir's (OPHR) Fortuna Floating Liquefied Natural Gas project has caused the group to significantly lag its European peers in the valuation tables, trading at a 45% discount to its tangible net asset value (NAV) compared to the sector's 20% average discount. With a project PV10 breakeven of under $4/million cubic feet (mcf), the project's strong economics position it well to join forces with upstream partners without reducing its 80% stake and keep on track for first gas in 2020. The priority is to ensure midstream partner Golar can deliver the converted vessel and finalise gas sale agreements. Finding an upstream partner to free up capital for other exploration can be put off until after the Final Investment Decision. Taking advantage of low drilling costs, a two-three well campaign could start in early 2017 in Myanmar and Cote d'Ivoire. Petrofac (906p) TP: 1,250p - Upside: 32% With its valuation at multi-year lows, it's not been easy for Petrofac (PFC). Disappointing execution of the Laggan-Tormore project, controversial decision-making, slow order intake, higher working capital and the recent departure of its CFO has weighed on sentiment. But with underlying profitability, a solid order backlog and management's determination to improve cash flow generation, Barclays reckons the fundamental investment case is "intact". 3i (675p) TP: 700p - Upside: 3.7% While the UK economy has surprised most in its strong reaction to the decision to leave the EU, there is no doubt that global macro uncertainties are only going to increase into next year. With the upcoming US elections and invoking Article 50, investors will want an investment sanctuary. Private equity giant 3i (III) is one such safety net, reckons Barclays, boasting of defensive characteristics and strong net asset value growth potential. With strong weighted earnings growth behind its private equity portfolio, the group has promised a 16p base dividend and a proportion of net realisations for 2017. Last year a dividend of 22p was the equivalent of a 3% yield. Prudential (1,441p) TP: 1,648p - Upside: 14% A true bull on the pensions group, Prudential (PRU) is the one true large-cap growth stock in the European insurance sector, reckons Barclays. Of course, it is exposed to industry risks and no investment is truly "safe", but the analyst reckons there is enough underlying growth momentum. With market-leading businesses in Asia, the US and UK, its record of growing earnings by 17% (compound annual growth rate) since 2004 is likely to ease back to 9% over the next five years, but this doesn't cloud Barclays' sentiment. Barclays says: "We believe Prudential is the only large-cap company in the sector with sustainable compound growth over a prolonged period, and that the multiple of 10x FY 2017E earnings does not reflect any premium for this growth." Derwent London (2,486p) TP: 3,500p - Upside: 41% A repeat outperformer of the UK Real Estate Investment Trusts, Derwent London (DLN) delivers returns over that of the London office market. Even though post-Brexit concerns have weighed on sentiment, Barclays reckons the experienced management team can succeed with its £800 per square foot portfolio trading at a 25% discount to sport net asset value. While the analysts don't rubbish concerns over macro uncertainty, they reckons low vacancy rates and limited supply should stop rents falling as low as the share price suggests. Wolseley (4,492p) TP: 5,000p - Upside: 11% Wolseley's (WOS) US business is on the cusp of a multi-year opportunity to expand in its fragmented core and adjacent markets. While a fifth of its sales come from online - and this is growing - 95% of its competitors have no internet offering at all. Delivering 4% US sales growth last year despite headwinds, Barclays is confident in its outlook for 2017. The UK business has so far held the group back, but a new strategy should be able to turn this around. Investors will hope the Nordics division can share the same fate. Even against European uncertainty, earnings should still grow at high-single-digit percentages (on a compound annual growth rate (CAGR) basis). Oxford Instruments (657p) TP: 970p - Upside: 48% While industrial and scientific tool maker Oxford Instruments (OXIG) remains high risk, there is the potential for high reward here, reckons Barclays. 2016 earnings were in line with guidance, but the better-than-expected debt level is likely to have grown again due to its earnout payments and dollar-denominated debt. Still, Barclays reckons the majority of this risk is discounted into the current price. On a positive note, the US research budget outlook looks good and Oxford should benefit from sterling's devaluation. Redrow (405p) TP: 432p - Upside: 7% Unlike some of its peers, housebuilder Redrow (RDW) continues to invest in its own future growth, which should underpin performance further out as the current housing cycle shows no signs of slowing down. Its re-entry into the London housing market includes the recent Colindale scheme that has gross development value of over £1 billion, but the majority of its units will be priced at less than £600,000 - the upper limit of the help to buy scheme. Yes, investors will have to sacrifice near-term dividends, but they will get exposure to a longer-term growth story, says Barclays. Ashtead (1,310p) TP: 1,279p - Upside: 2.4% A key driver of sentiment over equipment rental company Ashtead's (AHT) share price is the health of the American economy, so Barclays' belief that the US is just slowing and not entering a recession should be taken well. With market conditions supportive of the rental industry, the non-residential property market should continue to climb higher, allowing Ashtead to outperform - given its track record. Investors should expect some margin outperformance as its rental stores mature, which is expected to be the share price catalyst. WPP (1,808p) TP: 2,100p - Upside: 16% Over the last ten years, which includes a recession, marketing group WPP has grown organic revenue by 2.8% and EPS by 10% (on a CAGR basis). With recent results ahead of expectations, Barclays reckons management will continue to deliver double-digit EPS growth during times of growth, recession and recovery. The largest listed advertising group, management reckon it will achieve full-year organic growth of over 3% and a 30 basis point jump in margins. While the group trades at a premium, it's deserved reckons Barclays. SSE (1,542p) TP: 1,675p - Upside: 8.6% Kitted out with a sustainable 6% forward dividend yield, diversified business mix and exposure to structural growth in renewable and regulated networks, SSE (SSE) is Barclays' top European Utilities pick. Although there is concern UK supply regulation may become tighter than recent recommendations, the utility group has limited exposure. Even a cancellation of Carbon Price Support will reduce cash profit by just 2%. Paddy Power Betfair (8,820p) TP: 11,500p - Upside: 30% Barclays' favourite in European leisure, the analysts see the Paddy Power Betfair (PPB) brand as the recent merger of the two best quality names in the sector. Its multi-year growth story includes the potential for strong free cash flow growth and subsequent capital returns. Strong EPS growth will be underpinned by high operational gearing and no balance sheet constraints. "Scale is key and the business operates in structurally growing markets, with a strong management team and leading technology platform that can benefit from centralised technology and resources to develop new products to segment and target consumers in order to take market share," says Barclays. Cineworld (572p) TP: 665p - Upside: 16% With consumers still going to the cinema, even during periods of economic weakness, Cineworld's (CINE) defensive nature looks attractive. With limited supply growth in the industry, minimal exposure to the National Living Wage and attractive cash flow, Barclays is bullish on the group. Its cash flow allows it to finance its rollout, refurbishments and 55% payout ratio, while still paying down debt. EPS is expected to increase 10% over from 2015-2018, and its 2017 dividend currently yields 3.6%. "This offers investors double-digit total shareholder returns assuming no change in the PE multiple," they add.
master rsi: How BP can narrow the valuation gap - By Harriet Mann | Wed, 5th October 2016 - 14:49 How BP can narrow the valuation gap Less than three months ago, Barclays upgraded its price target for BP (BP.) to 600p. The broker still thinks the shares are worth that money, but a lot has happened since then to cloud the investment picture. BP currently trades on 10.8 times Barclays' earnings per share (EPS) estimates for 2017, a discount to Royal Dutch Shell (RDSB) on 12 times. The prospective dividend yield is broadly comparable at 6.5% and 6.8% respectively. "Although we see a clear valuation argument for owning BP shares, we do recognise that valuation alone has rarely proved enough for individual companies in the oil sector to outperform, with the stocks having the ability to remain cheap for long periods of time," writes analyst Lydia Rainforth. "Yet the coming 18 months for BP should see the results of a multi-year improvement programme, making a meaningful difference to the bottom line without the drag of both elevated Macondo-related payments and restructuring charges that remain over the course of 2016." Rainforth repeats her 'overweight' rating on the oil major, arguing that four key messages from BP's field trip to Azerbaijan in June have been overlooked: imminent production growth, better margins, better efficiency, and an ability to grow the portfolio without an acquisition. Rainforth still thinks BP should be trading 28% higher at 600p, not seen since Deepwater HorizonOil prices are now expected to trade above $50 a barrel (/bl) in 2017 following OPEC's shock agreement to some level of production cut for the first time in eight years. BP's share price has surged 9% since the news, filling the gap left after BP's double-digit summer slide. Trading at an intra-day high of 470p, Rainforth still thinks the shares should be trading 28% higher at the 600p not seen since the Deepwater Horizon oil disaster in 2010 - that cost BP an eye-watering $61.6 billion (£46 billion). Chief executive Bob Dudley has been adamant he would "rebalance the financial framework" to sustain the dividend he increased just before the industry collapsed. It's been controversial, but efficiency has improved - cash costs have fallen by $5.6 billion over the last year. Rainforth reckons the reduction in capex and planned project start-ups will also help cover future dividends from organic cash flow with oil prices at $50-55 a barrel in 2017, just a tad higher than where they are now. With a simpler portfolio and more efficient operations across both its upstream - exploration and production - and downstream - refining and marketing - businesses, BP's production and cash flow should surge. It wants to add 800,000 barrels of oil (kboe/d) to 2015's daily production by 2020, with 500kboe/d of capacity available in just 15 months' time. Watch out for its North Sea projects Quad 204 and Clair Ridge in the first half of 2017 and the Khazzan project in Oman. Not only will these growth and other projects increase production, but they'll also be more profitable. Expect operating cash margins 35% better than the current portfolio. In a $50/bl world, this should increase cash flow by $4.5-5 billion, with total pre-tax cash flow estimated to be around $7-8 billion. Despite the widely-held belief to the contrary, BP also has enough options for growth past 2020 "without the need for a big acquisition", upstream chief executive Bernard Looney said at the field trip. What constitutes as "big" is clearly up for debate, but this should ease some concerns. "This improving financial and operational performance comes at a point when the share price is offering a yield of 6.5% and over 30% potential upside to our 600p per share price target," says Rainforth. "As such we see a material opportunity for the share price to continue to rerate. BP is our Top Pick in the sector and we rate the stock 'overweight'."
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