MMO2
The mobile group spun off from BT, which owns O2 in the UK, is a favourite of SG Securities, which was telling its clients to buy shares again this week. Growth in Germany should bring economies of scale, SG says. “We believe O2 UK will continue to demonstrate good momentum. Here, it is benefiting from a range of positive factors, such as 3’s handset shortages, the high profile sponsorship of the England rugby team, and the introduction of new products such as the innovative O2 Home and Bolt-Ons tariffs.”
MAN GROUP
UBS on Man, the FTSE 100 hedge fund manager: “The hedge fund market has grown consistently in the past 10 years, through bull and bear markets. We believe the growth will continue as more private individuals and pension funds invest in absolute value strategies. We believe Man is exceptionally well placed to capitalise on this growth. Buy.”
ELEMENTIS
The respected chemicals sector team at E*Trade Financial turned positive this week on Elementis, a maker of pigments for ink, cosmetics and paint. The broker reckons the competitive pressure from Chinese manufacturers which has hit Elementis profits could be about to ease. “We believe few plants in China are economically viable and are under increasing pressure to close.”
CELLTECH
Jonathan Senior at Evolution Beeson Gregory published a vicious “sell” note on the UK’s biggest biotech group this week. “It would be difficult to deny Celltech’s marketing track record is poor. But for the company to have a long-term future it must reverse this trend with its key product, CDP-870, which is in development for Crohn’s disease and rheumatoid arthritis. Buy.”
BOC
Shares in the industrial gases group BOC are worth pounds 10 apiece, says Citigroup Smith Barney, which is recommending them to clients. Demand from China and the economic recovery in the US should boost performance, as should an upturn in the global microchip market, where BOC has particular expertise. The shares have tumbled since the company lost a court case over whether welding fumes cause Parkinson’s disease, but Smith Barney reckons the potential damages are overestimated.
s.foley@independent.co.uk
