Broker tips: Old Mutual, BG Group, JD Wetherspoon

9th Mar 2012 11:31

Nomura has taken its first look at Old Mutual's results, saying that there were no surprises in the savings and insurance group's full-year statement.Adjusted operating profits of £1,614m were more or less in line with consensus estimates, "underlining the operational resilience of Old Mutual during a tough year for financial services businesses," the broker said.Nevertheless, the broker says that all these positives are already in the price with the stock trading at 9.1 times prospective earnings, compared to a sector average multiple of 8.3. Nomura keeps a neutral rating and 150p target.UBS has raised its estimates for natural gas giant BG Group following a recent company field trip to its operations in Brazil."We saw focus from the operator on delivery, maturation of development plans ahead of our expectations, progress on implementation, a collaborative approach among partners/contractors, and promise of upside in resource and returns," the broker said.UBS has raised its net asset value (NAV) per share forecast from 1,878p to 1,982p and subsequently upped its price target from 1,635p to 1,785p, which is calculated using a 10% discount to NAV. UBS maintains its buy recommendation.Peel Hunt has cut its target price for pubs group JD Wetherspoon from 490p to 440p, after first-half like-for-like (LFL) sales came in below expectations.LFL sales in six months ended January 22nd fell by 0.7%, compared with the broker's forecast of 2.5% growth, which it said was disappointing given the slightly weaker comparatives. The broker also expected the dividend to be raised by 8% but it was held at 4p.Pre-tax profits, earnings per share and the operating margin, however, were slightly ahead of estimates. Despite the LFL miss, Peel Hunt maintains its buy recommendation.BC