Stockbroker tips from ShareCast

Broker snap: RBS upgrades Petrofac

Royal Bank of Scotland (RBS) has mulled over the record numbers announced by oil and gas plant provider Petrofac and determined that they warrant an upgrade in the broker's rating of the stock.

RBS has upgraded the stock from 'hold' to 'buy' and beefed up its price target to 1230p from 1025p after increasing its net profit forecasts for 2010 by 8%.

After stripping out the company's UK Continental Shelf assets, which are being hived off into a joint venture with Swedish company Lundin Petroleum, RBS expects Petrofac to post a net profit of $378m in 2010.

The trading environment in the engineering and construction (E&C) market remains competitive, with Korean operators maintaining 'aggressive order intake targets for 2010' but Petrofac, with its strong order backlog, can 'be selective and continue to secure work at attractive margins,' RBS believes.

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	8,947.17	-0.61%
Hang Seng	20,795.12	-1.02%