- Credit Suisse downgrades AstraZeneca
- Berenberg raises Craneware target price
- HSBC downgrades Ocado
- JPMorgan cuts price target of Segro
- Berenberg and JPMorgan trim Tullow Oil target price
Credit Suisse has downgraded AstraZeneca (LON: AZN) to ‘neutral’, cutting the target price to 10,076p (11,000p). The bank said that although the stock had posted a strong year-to-date price performance, its valuation was now less attractive. Yesterday, its Evusheld treatment for Covid-19 was approved for use in the EU, where it is already widely available. Covid-19 remains a serious health concern, and Evusheld is now the only long-acting antibody combination available for both prevention and treatment of Covid-19 in Europe. The broker consensus remains overwhelmingly positive, with 23 brokers on a ‘buy’ and six on ‘neutral’. At close of trading, the stock was priced at 10,076p, a return of 17.8% YTD and 22.7% over 12 months.
Berenberg raised its Craneware (LON: CRW) target price to 2,600p (2,320p) and reiterated its ‘buy’ rating, describing the stock as an “excellent inflationary play” with a “captive customer base”. Craneware, an Edinburgh-based healthcare software firm that operates in the US market, has more than doubled its revenue in the year to June 30, following the acquisition of Florida-based automated pharmacy procurement firm Sentry Data Systems in July 2021. However, profit remained flat due to operating costs. Craneware said it is expecting continued sales momentum across the group. At close of trading, the stock was priced at 1,950p, a return of -20.2% YTD and -18.1% over 12 months.
HSBC has downgraded its recommendation for Ocado (LON: OCDO) to ‘reduce’ (hold). Ocado, best known as an online grocery firm in partnership with Marks & Spencer, but also as a developer of warehousing technology, is facing a difficult winter, with the cost-of-living crisis expected to curb discretionary spending. Over the past six months, the broker consensus has deteriorated slightly, though currently it is still balanced in favour of the stock, with seven brokers on ‘buy’, nine on ‘neutral’ and three on ‘sell’. At close of trading, the stock was priced at 606p, a return of -63.3% YTD and -63.2 % over 12 months.
JPMorgan cut substantially the price target of property developer Segro (LON: SGRO) to 1,150p (1,585p), but kept its ‘overweight’ rating. After Berenberg cut seven housebuilders last week, JPM followed suit by cutting the target prices on five housebuilders: Derwent London, 3,050p (4,200p), ‘overweight’; Grainger, 310p (370p), ‘overweight’; Great Portland, 620p (900p), ‘overweight’; Hammerson, 17p (22p), ‘underweight’; and LondonMetric, 235p (340p), ‘overweight’. Broker consensus on Segro is positive, with 11 on ‘buy’, eight on ‘neutral’ and one ‘sell’. At close of trading, the stock was priced at 847.2p, a return of -39.3% YTD and -30.3% over 12 months.
Berenberg has trimmed its Tullow Oil (LON: TLW) target price to 90p (95p), while maintaining its ‘buy’ recommendation. JPMorgan also reduced its Tullow Oil target price to 79p (83p), with an ‘overweight’ recommendation. Africa-focused Tullow has announced that profits for this year have more than doubled to £228m, and that it will continue with the proposed all share merger deal with Capricorn Energy (LON: CNE). However, the oil price looks set to continue its slide, three months after hitting its peak in June, thanks to a slowing global economy, while the EU has followed the example of the UK by announcing plans to introduce a windfall tax on energy companies. At close of trading, the stock was priced at 45.9p, a return of -1.1% YTD and 4.2% over 12 months.
