Broker snap: Centrica among Ambrian's favourites

25th Feb 2010 11:33

Investors have warmed to British Gas-owner Centrica following a good set of full-year results and indications that 2010 has started well.An 18% fall in pre-tax profits to £1.64bn reflected a change in the operating profit mix, with a shift from upstream to downstream, while the lower tax rate on downstream profits means earnings per share were flat at 21.7p, ahead of expectations."These are good results, though pretty much as expected," said Ambrian. "The continuing cold weather should have ensured a good start to 2010, with the key supply months being December, January and February.""Centrica continues to look well set in the UK energy supply market, with last year's two major upstream acquisitions underpinning its vertically integrated hedge position."Centrica remains one of the broker's favourite plays in the sector, meaning the 'buy' recommendation and 317p target price remain unchanged.