Brokers: Antofagasta and KAZ get upgraded
Miners enjoyed a strong day of trading on Thursday
After it posted a healthy set of results on Thursday, Credit Suisse moved into action and upgraded Kazakhstan copper miner KAZ Minerals PLC (LON:KAZ) to ‘outperform’ from a ‘neutral’ rating.
The bank also upped its share price for the company to 250p from its previous forecast of 165p.
The Swiss banking giant said execution risks surrounding KAZ’s two main growth projects are “diminishing”, while adding that yesterday’s results beat its expectations.
Although it remains cautious on copper prices, Credit Suisse said it was buoyed by the fact that around a third of KAZ’s revenues are from gold, silver and zinc.
Another copper miner to benefit from yesterday’s rally in the mining was Antofagasta PLC (LON:ANTO), which had its share price upped 10% by Jefferies International to 550p.
Jefferies commented that the first half results released earlier this week were in line with expectations.
Investors also seemed content with the first six months of trading with shares trading around 10% higher than at close of play last Friday.
Jefferies also released a note on the state of UK real estate companies over a month on from the Brexit vote.
GREAT portland estates PLC (LON:GPOR) was upgraded to a ‘hold’ recommendation from underperform
British Land PLC (LON:BLND) had its share price target cut to 550p from 570p, with Jefferies repeating its ‘underperform’ rating after explaining that it “looks strategically confused”.
The bank says it remains downbeat on London office developers as it believes “the London office development bubble has met the Brexit demand shock”.
As a result, it has downgraded its price target for Derwent London PLC (LONLN) to 2660p from 2950p, while retaining its ‘hold’ recommendation for the firm.
Elsewhere, H&T GROUP PLC (LON:HAT) was in favour at finnCap with the broker repeating its ‘buy’ recommendation and 320p target price for the stock.
finnCap said it still “retains a positive long-term stance” on the pawnbroker, as the strong gold price and the delivery of new products “should confirm this year’s upward momentum”.
And finally, Sirius Minerals PLC (LON:SXX) had its ‘buy’ recommendation repeated by Shore Capital, which upgraded its net present value (NPV) for Sirius to 75p per share, up from 60p.
The broker believes any investment in the company will become “progressively de-risked”, despite the fact it is a few years away from becoming a cash flow-generating business.
It also says shareholders “should enjoy significant value uplift as it advances towards production” hence the maintaining of the ‘buy’ recommendation and the NPV raise.