BROKER FORECASTS
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Broker views: Hotels and oil

29th August 2017, 15:29

Equity analysts at Berenberg upped their recommendation on Millennium & Copthorne [LON:MLC] to 'hold' (from 'sell') after boosting their earnings estimates following better than expected first half results from the hotel group.

The bank commented that, while the results showed the company continues to face challenges in many of its key regions, these difficulties were more than offset by the performance in New Zealand where RevPAR growth was very strong and land sales continued to increase.

Berenberg lifted its price target to 450 pence a share (from 380 pence).

Meanwhile, Jefferies boosted its price target for Premier Oil [LON:PMO] by 32% to 90p per share (from 68p), which it said was due to recent events such as its production increase, Catcher plateau increase, Zama discovery size increase, Tolmount funding agreement and the Wytch farm asset sale.

The broker added: "We are more confident in Premier's ability to move its growth projects forward and de-lever the balance sheet. The crucial contrast here to other levered UK peers is that PMO's debt refinancing, while protracted and dilutive during the process, is now complete. Secondly, Catcher field ramp-up is ahead as a catalyst and the Mexico Zama discovery appears simply world class at ~600mmb of oil after just one well."

Jefferies upgraded its investment rating to 'buy' from 'hold'.




At 3:29pm:

[LON:MLC] Millennium Copthorne Hotels PLC share price was +11.25p at 462.35p

[LON:PMO] Premier Oil PLC share price was -1.75p at 54.25p
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