Broker tips: Currys, Trainline, Anglo American

30th May 2024 13:12

(Sharecast News) - Berenberg upgraded Currys on Thursday to 'buy' from 'hold' and lifted the price target to 90p from 67p as it said the electricals retailer was "a sound way to play the expected improvement in UK retail demand".

Berenberg said Currys' improving sales momentum, expansion of market share and presence within a significantly depressed, highly discretionary segment of domestic retail makes it well placed to benefit from a near-term rebound in demand.

"Despite a record of building sales momentum and UK end-market dynamics that are well suited for demand recovery, Currys trades on a significant discount to peers," it noted.

"We expect this discount to diminish as trading momentum continues, indebtedness reduces further and growth accelerates."

Canaccord Genuity has hiked its target price for booking platform Trainline from 428p to 455p and kept a 'buy' rating, quashing concerns around rail nationalisation speculation that has been weighing on the shares for some time.

"Trainline has seen its share price fall after the proposed Labour changes to the UK rail. Yet, in our view, the changes proposed by Labour help place Trainline as a key component within their new UK rail vision and should help remove uncertainty overhanging the stock," said Canaccord analyst Karl Burns.

He said that the visibility provided by Labour shows that third-party players like Trainline are "crucial" to the party's plans for the UK rail model.

Jefferies downgraded Anglo American to 'hold' from 'buy' on Thursday and slashed the price target to 2,700p from 3,200p after BHP abandoned its £39bn pursuit of the London-listed miner as the deal structure couldn't be resolved.

2BHP has been unsuccessful in its attempt to acquire Anglo American as structural problems relating to inter-conditional demergers of Kumba and Amplats were too substantial to overcome," Jefferies noted.

"Now it is on the Anglo management team to execute on its own announced restructuring plan. While we see significant upside to Anglo's share price in the longer term, we downgrade AAL to hold based on the risk of value leakage and delays as the Anglo break-up progresses."