- Jefferies has raised the Serica Energy price target to 360p
- Shore Capital downgrades Oxfod Instruments to HOLD.
- Citigroup has upgrades Intertek Group to BUY
- Jefferies raises BAE Systems target price; SocGen downgrades to HOLD
- FinnCap initiates ‘significant’ BUY recommendation for Kingswood Holdings
Serica Energy (LON: SQZ), the North Sea-focused oil and gas company that produces 5% of the UK’s gas, has seen its share price increase more than 35% over the past three months. The recent surge in gas prices, from 25p/therm in 2020 to 113p last year, has more than doubled its cash pile, allowing it to open up more wells. The share price is currently trading at 277.5p, approaching its 52-week high of 293.5p. Four brokers cover Serica and all recommend BUY. Jefferies has raised the Serica price target to 360p (from 290p) and recommended BUY.
Oxford Instruments (LON: OXIG) shares have jumped more than 38% over the past week, on news of a confirmed £1.8bn takeover bid from Spectris Plc, a supplier of precision instrumentation and controls. Oxford Instruments, which makes scientific tools for research and industry, said Spectris had made a final offer on Friday that values OXIG at 3,100p per share. Shareholders will get £19.50 in cash plus £11.50 in new Spectris shares for each OXIG share. OXIG said it is ‘minded’ to recommend the offer to its shareholders. Shares closed yesterday at 2,600p, recovering all losses made since the end of December, and nearing its 52-week high of 2,770p. Shore Capital has downgraded OXIG to HOLD.
Intertek Group (LON: ITRK), a London-based assurance, inspection and product testing specialist, has watched its share price lose more than 13% over the past two months. However, news of ‘strong progress’ made in revenues, margin, earnings and cash in 2021 saw the stock stage a rally, reaching 5,384p. Pre-tax profit for 2021 was up 20% and revenue was up almost 2%. CEO Andre Lacroix forecast a robust underlying revenue growth for 2022 and said he expects the $250bn global quality assurance market to grow faster post-Covid. Intertek shares are still some way off their 52-week high of 6,304p. Shore Capital maintains a HOLD, while Citigroup has upgraded Intertek Group to BUY.
BAE Systems (LON: BA) stock has jumped more than 21% over the past week, as investors react to the widening conflict in Ukraine and as the company reported strong 2021 results. As an across-the-board supplier of electronic systems, weapons platforms, aircraft and ships, the group is expected to benefit from increased defence spending at times of geopolitical uncertainty. The 2021 results showed growth in sales, earnings, cash flow and orders, while net debt decreased. Jefferies raises BAE Systems price target to 875p (from 695p), and keeps the BUY rating. SocGen cuts BAE Systems to HOLD.
Kingswood Holdings (AIM: KWG), the international wealth management group with £9.1bn of assets under advice and management and over 19,300 private and institutional clients, has the potential to deliver c.£20.0m EBITDA, according to broker finnCap in a report issued on Monday. Kingswood has completely transformed itself within the space of just a few years, showing strong growth through acquisitions both in the UK and the US, with a pipeline of acquisitions on the way. Growth in the wealth management sector is being driven by demographic trends and an expanding need for retirement and wealth management solutions at a time of increased financial and regulatory complexity. The stock is trading at 28.00p. FinnCap initiates a ‘significant’ BUY recommendation.
