Broker tips: Tullow Oil, IG Group, Hikma

26th Aug 2011 12:48

UBS says that Tullow Oil is in a comfortable financial position, and with catalysts "plentiful" in September, the broker keeps its buy rating on the Africa-focused oil giant."With the expectation of receiving $2.9bn cash for the sale of its Ugandan assets, coupled with growing cashflows from Jubilee, Tullow looks to be in a relatively comfortable position," the Swiss bank said.However, after making minor adjustments to its net asset value assumptions (-4%), UBS cuts its target price for Tullow from 1,750p to 1,650p.Following IG Group's record client activity reported in its recent trading update (22 August), Singer Capital Markets has upped its earnings per share (EPS) forecasts and reiterated its buy recommendation for the spread-betting firm.Despite it being holiday season in the majority of the group's markets, IG expects revenues to exceed £94m in the three months ending 31 August, up from £79.1m in the first quarter of last year. "Together with a low bad debt charge and no change in overall cost assumptions, this drives a 6% upgrade to full year EPS based on first quarter trading alone," the broker said. The target price is left at 540p.UBS has cut its target price for FTSE 250 pharmaceuticals firm Hikma from 900p to 850p after first half revenues and earnings came in below forecasts.The broker notes that revenues in the six months to 30 June of $395m missed its forecasts by 1.7% and consensus estimates by 0.4%.A buy rating is retained.BC