Broker tips: Rockhopper, Michael Page, Lookers

15th Aug 2011 12:44

Matrix recommends buying shares of North Falkland Basin-based oil and gas group Rockhopper Exploration following the positive resource update on Monday.New estimates for stock tank oil initially in place for the low, mid and high cases are 608m barrels, 1,086m barrels and 1,279m barrels, respectively."Our current target price of 400p is based on 155mmbls for the Sea Lion discovery. This morning's announcement is very positive, and we will be reviewing our valuation to incorporate new volume estimates," said analyst Charlie Sharp.For now, the target price stands at 400p.Prime Markets thinks that shares in Michael Page International have been oversold, and labels the stock as a "high potential recovery play".The recruitment firm announced that revenue in the first half of 2011 rose 27.6% while pre-tax profit after non-recurring items fell 26%."Now with the relative strength index looking well oversold below 20, we are looking for a recovery to current lower charting resistance at 360p in the first instance, followed by the 400p level from a week ago," the broker said.A buy rating is maintained.Panmure Gordon has upgraded its rating on new and used car dealer Lookers from hold to buy ahead of the group's first half results due on Wednesday."While consumer confidence nears a 2-year low, we continue to believe that Lookers remains well positioned across all divisions, with the Group expected to continue to take market share in new and used cars and go from strength to strength in its Parts business," said analysts Mike Allen and Paul Jones.The target price stands at 60p.BC