Stockbroker tips from ShareCast

Broker snap: Charter losing fans

Panmure Gordon thinks it has been too optimistic on the prospects of recovery at Howden, the subsidiary of Charter , and no longer rates the industrial engineer's shares as a 'buy'.

It has cut its rating to 'hold' on concerns over revenue visibility for next year.

"The rate of Howden's order intake for delivery in 2011E is lower than expected and threatens to create a revenue shortfall," said Panmure analyst Oliver Wynne-Jones. "A recovery in power sector orders at some stage during 2011E provides some hope but until then we believe the disappointments are set to continue."

The broker thinks that the company's fan base has been diminishing, with the market concerned over the group's holding structure, its guidance record and a desire for more detailed disclosures from management.

The target price has been slashed from 1010p to 770p as a result of applying reductions to the fair value of the company for "pension mix, for opaque aspects of its business structure, and for the lack of revenue visibility."

Stockbroker tips: Most read

Broker tips: BT, Misys, GAME
Fri 03 February 2012 11:27
Broker tips: ARM, Whitbread, Premier Oil
Mon 30 January 2012 11:25
Broker tips: Glencore, Shell, 888
Mon 06 February 2012 12:44
Broker tips: N. Brown, Aveva, Max Petroleum
Fri 27 January 2012 11:31
Broker tips: ARM, Afren, Heritage Oil...
Tue 31 January 2012 11:52

Deal shares from just
£5.95 per deal
Find out more »

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

Market latest

FTSE 100 | FTSE 250 | All Share

FTSE 100	5,895.47	+0.33%
FTSE 250	11,234.57	+0.65%
FTSE All Share	3,046.11	+0.39%
Dow Jones	12,890.46	+0.05%
NASDAQ	2,927.23	+0.39%
Xetra DAX	6,788.80	+0.59%
Paris CAC 40	3,424.71	+0.43%
Nikkei 225	9,002.24	-0.15%
Hang Seng	21,010.01	-0.04%