Broker tips: G4S, ASOS, Alterian

13th Apr 2011 12:24

The emerging market footprint of security firm G4S is underappreciated, according to UBS, who has hiked up its target price from 300p to 330p."Our detailed analysis of security industries in emerging markets reveals G4S has a stronger competitive position than we believe is appreciated," said the Swiss broker.Although weaker in Latin America, the broker says that the company has high market shares throughout Asia, emerging Europe and Africa and the Middle East, "a footprint which we think will be very difficult to replicate."A 'buy' rating is kept.Even though internet fashion retailer ASOS saw UK sales surge in the fourth quarter, finnCap remains a 'seller'."The increase in the price of ASOS's shares during the past year has been driven by rating expansion: the consensus has barely changed. Implicitly, the market seems to be assuming that the revenue opportunity is greater than previously believed," said analyst David Stoddart.While the broker says that there is no doubt that the shares should trade at a "healthy premium" to sector rivals, it says that this is still reflected in its target price "which nevertheless falls a long way short of the current price." A 1,225p target price is maintained.Panmure Gordon downgrades marketing software provider Alterian to a 'sell' following another profit warning.After a statement issued on 4 April that said full year revenues would be 10% below expectations (which were then in the range of £42-44m), the group revealed Wednesday that the outturn for the year will be even lower than that implied previously."There are no encouraging signs in this, but the latest warning will only raise calls for the company to be sold from a murmur to a cresendo - yet with the business looking like it is stuck in a hole, buyers are more likely to be cheeky bids from financial buyers. This is very disappointing," said analyst George O'Connor.The target price is reduced to 125p, from 159p.---bc