Broker tips: Tullow, Admiral, Jupiter Fund Management

9th Dec 2013 12:14

Canaccord Genuity has kept its 'hold' rating and 1,050p target price for Tullow Oil after the firm plugged and abandoned the Tultule-1 well onshore Ethiopia after it failed to find oil.The broker explained that it had only attributed a value of 1p per share to Tultule on a risked basis (5p/share unranked) "so the target was relatively small". "The importance of the well was not so much in the value of the standalone target but was more about opening the next basin in the East African drilling campaign. Tullow has had a bounce over the last week and we expect a bit of weakness today."Numis Securities has reiterated its 'add' rating and 1,425p target price for Admiral following the insurance group's announcement that it has extended its underwriting agreement with Munich Re. Analyst Nick Johnson said: "We are bullish on the shares given our view that excess reserves will provide strong earnings and dividend support during the cyclical downturn, with attractive longer-term International and UK growth prospects undervalued in the current rating."Jupiter Fund Management shares look attractive after their recent underperformance, according to Panmure Gordon, which reiterated its positive stance on the stockfollowing the appointment of Maarten Slenderbroek as its new Chief Executive Officer."This move signals the importance of their international strategy in realising the goal of doubling assets under management (AuM) from £29bn in the next five years while maintaining operating margins which at 50%+ remain best in class," said Panmure analyst Keith Baird. "The business that has grown up over the last decade is very UK-centric so that diversification is welcome," he said.BC