Date: Wednesday 15 Oct 2014
LONDON (ShareCast) - Abbvie's potential $54bn takeover of Shire should still go through, according to an analyst at Panmure Gordon, despite fears on Wednesday of the deal sinking after the US firm said it was reconsidering.
"The board of Abbvie has a responsibility to its shareholders to consider new facts relating to any ongoing event that impacts shareholder value. Ultimately we expect the deal to go through."
Citigroup has raised its recommendation for financial services group Hargreaves Lansdown from 'sell' to 'neutral', saying that while concerns remain the stock's poor performance so far this year has gone far enough.
The target price for the shares has been slashed from 980p to 830p, but the bank has taken a more positive stance, explaining that the 43% drop from the stock's peak in January is "enough to reflect the risks".
Rio TInto remains Canaccord Genuity's top pick in the large-cap mining sector after the group's third-quarter production update on Wednesday.
"Its 4.3% dividend yield in 2014, rising to over 5% in 2016 as the free cash flow comes through is a signal of the strong free cash flows we expect from the group," the broker said.
Balfour Beatty's share price surged on Wednesday after the infrastructure group ended a five-month search for a new boss, but broker Westhouse Securities warned this may only be a "short-term positive" as it reiterated its 'sell' recommendation.
Westhouse analyst Alastair Stewart said to expect a bounce in Balfour Beatty's shares, which have fallen by around a third since its 29 September profit warning. However, "further risks lie ahead, so our view is to 'sell' into any strength", he said.
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