News

Broker tips: Cadbury, Johnston Press, Premier Oil

28 August 2008 10:09:00

JP Morgan has initiated coverage on sweet maker Cadbury with a 'neutral' rating and a 710p target price.

The broker sees positive trends for the EU food sector in coming months including a moderation in cost inflation and strong emerging market growth.

JPM has a 710p price target on Cadbury.

Johnston Press's revenue trends are 'abysmal' JP Morgan said as it shaved its target price on the newspaper publisher by a fifth to 40p.

The broker noted that Johnston Press saw first half advertising revenues fall by 9.5% and that the deterioration was continuing into the second half.

The company also has little internet exposure to ease the pain of reduced classified advertising, JPM noted.

It keeps its 'underweight' rating on the Scotsman and Yorkshire Post publisher.

KBC Peel Hunt has lowered its rating on oil and gas producer Premier Oil to 'reduce' from 'hold' following its interim results.

"Premier's oil and gas production numbers were steady at 38,000 barrels of oil equivalent a day, with planned output growth in Pakistan more than offsetting natural declines elsewhere," the broker said.

"However, it is guiding for lower production in the second half, giving full year guidance of 36,000 to 38,000 barrels of oil equivalent a day. The first half results were significantly behind our estimates and in these circumstances we will need to cut our full year 2008 estimates by at least 20%."

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