Stockbroker tips from ShareCast

Broker snap: Petrofac demerger clouds picture

Petrofac was the best performing blue-chip stock on Monday morning after the oil fabrications giant reported results that were ahead of expectations.

In mid-December the company had indicated that net income for 2009 would be at least $330m and it comfortably beat that figure with net income of $353.6m.

Last week the company announced plans to hive off its UK Continental Shelf assets into a new company, EnQuest, to be formed with Swedish oil and company Lundin Petroleum.

Oriel Securities has retained its 'add' recommendation after the results, having previously argued that the EnQuest deal would lead to an 'upward re-rating' as a result of lower exposure to exploration and production. The broker thinks the shares will hit a range of 1000p - 1050p once the EnQuest deal goes through.

Evolution Securities takes a more lukewarm view and thinks investors should wait until the demerger takes place before considering whether to invest. It has a 'neutral' rating on the stock.

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	8,967.47	-0.39%
Hang Seng	20,834.28	-0.84%