logo-loader

City analysts upbeat on Poundland following CMA clearance

Published: 12:20 26 Aug 2015 BST

shutterstock_213770188_55dda1991d30e
Poundland was getting City analysts excited today

Discount store Poundland (LON:PLND) gets some broker attention today, with Canaccord upgrading the stock to 'buy' from 'under review' after the provisional clearance by the Competition and Markets Authority (CMA) of its proposed purchase of 99p Stores.

The broker reckons this is very positive news.

"This outturn has been what we always expected, given the ongoing intensity of competition within the wider retail market, Poundland's breadth of product offer across many categories, and the change in consumer shopping habits now favouring more frequent and smaller shopping trips," it said, targeting a price of 400p (previously under review).

US broker Jefferies also takes a look at the stock, rating it a 'buy' and also targeting 400p.

"Valuing Poundland ahead of management's comments on the synergy potential is tricky. In addition, on one hand, given the CMA has widened the competitor set to include Tesco and Asda, there may be potential for further deals in the sector.

"On the other, our survey results suggest Poundland could be rapidly reaching saturation of the UK market. For now we believe the integration potential justifies buying the shares."

Also in the broker frame on Wednesday was state-backed bank RBS (LON:RBS), which heavyweight Morgan Stanley has upgraded to 'overweight' from 'equalweight'.

Jefferies also looked at the banking sector but its take on RBS is rather different - reducing the target price to 482p from 510p previously, although it does repeat a 'buy' stance.

Computer chip designer ARM Holdings (LON:ARM) is the subject of a note from German bank Bernstein, which has upgraded the share to 'market perform' from 'underperform'.

Newspaper owner Daily Mail & General Trust (LON:DMGT) has  a repeated 'overweight' stance, while the price target is reduced to 955p from 1,035p.

It said it has adjusted forecasts after the recent results from the company, which highlighted weaker printadvertising, a weaker Euromoney and more moderate growth than expected at DMGi.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

1 hour, 15 minutes ago