Broker tips: Rockhopper, Vodafone, Jupiter Fund Management

6th Jan 2012 11:17

Analysts at Credit Suisse have this morning initiated coverage on Falklands focused oil exploration group Rockhopper at 'outperform'.Their valuation model for the company gives a 'risked' net asset value for the firm´s shares, under a successful 'farm out' agreement for its Sea Lion oil field, of 627p per share, which is 230% above the current share price.Two other possible positive catalysts for the company´s share price are:1. The potential for growth from an upgrade in resource volumes by end 1Q 2012 (+35 pence per share potential). 2. M&A upside given that the outfit has the largest holding of undeveloped resources in the Falklands basin.Goldman Sachs has upgraded the shares of British telecommunications group Vodafone to "buy" from "neutral," saying a merger or acquisition between the British company and US outfit Verizon Communications may be "attractive," according to Bloomberg.Analysts at Credit Suisse have this morning decided to downgrade several of the UK´s fund managers as part of a wider reassessment of European asset managers. While they admit that equity market performance recovered strongly globally during quarter four they also, "expect investors to remain cautious on the sustainability of the recovery, not helped by delays in a resolution to the European macro issues leading to subdued net fund flows during Q4 as highlighted by industry fund flow to date."That is not say that the sector´s valuation is expensive, but it is trading approximately 30% above the 2008/2009 trough. Consequently, and given the high level of macro uncertainty, low levels of risk appetite and limited self help they we believe it is still too early to take an 'overweight' position at the sector level.Credit Suisse lowers Ashmore to neutral (from 'outperform'), F&C to 'underperform' from 'neutral' and Jupiter Fund Management to 'neutral' from 'outperform'.AB