Summary
BUY ANGLO AMERICAN Goldman Sachs has upgraded mining giant Anglo American to buy from neutral, tipping investors to snap up shares in the firm. In a note on the metal and mining industry, the bank says that Anglo has one of the more attractive risk and reward balances of its sector, and notes that since the majority of its income is generated from copper, iron ore and platinum, Anglo should be one of the first companies to return to profitability as the economy improves. Although Goldman Sachs admits to concerns that the firm might be "weaker than expected" at controlling costs and therefore be less profitable, it recommends the firm and gives the stock a 2491p target price. The group's shares were today changing hands for 38p more, at 1618p.
SELL DAIRY CREST Credit Suisse has downgraded milk company Dairy Crest, advising investors to sell its shares. The bank sees "little attraction" in Dairy Crest, and says that in recent years the company's underlying profits "have consistently gone backwards", with growth coming about only through acquisitions. Credit Suisse says that Dairy Crest's balance sheet looks particularly tight at the moment, as evidenced by the firm's decision to slash its dividend, but it believes this wasn't cut enough. Although it has slightly raised its target price from 235p to 270p, since it expects that lower raw milk prices will not be passed on to doorstep customers, the bank still rates Dairy Crest underperform. The company's shares today lost 9p to reach 279p.See the full content of this document
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