Broker tips: G4S, Bunzl, African Barrick Gold

28th Aug 2013 11:22

Panmure Gordon has maintained its 'hold' rating and 240p target price for security solutions group G4S after a weaker-than-expected first half, but has praised management's efforts to turn the business around.The broker said that while this will be a year of consolidation for G4S, it is a strong start by the new management team: "[...] we applaud the quick work undertaken by management to re-structure the group and shore up the balance sheet."Berenberg has maintained its 'sell' recommendation for distribution business Bunzl, saying that the stock's premium rating is hard to justify following its strong performance as of late.Berenberg said that looking ahead of the second half the outlook "remains stable albeit dull". Organic growth is expected to stay at modest levels, but margins are unlikely to improve significantly and pricing will remain under pressure.Nomura has hiked its target price for precious metals group African Barrick Gold (ABG) from 155p to 250p, saying that it sees a 'golden value opportunity' after the firm's restructuring."ABG, despite being up 36% vs sector since July 1st, should benefit from increasing market realisation of potential cost savings, providing a rare value opportunity in the gold space. At 0.5x P/NPV ABG continues to be heavily discounted, but we think this could change - both through the restructuring but also the recent management change."BC