Broker tips: Tullow Oil, Saga, Pets at Home

3rd Jul 2014 12:13

Tullow Oil "now offers substantial long-term value", according to Westhouse Securities, which repeated its 'add' recommendation for the stock."Tullow is now less an exploration-led E&P stock and more a diversified portfolio of substantial assets which are capable of delivering significant growth in production and cash flows over the medium term."UBS has initiated coverage of Saga with a 'neutral' rating, saying it is cautious on near-term newsflow despite the company's "unique exposure to a growing demographic".While it does have competitive advantages, the bank said it is uncertain how the brand will "age in the digital world". The bank gave a 177p target for the share price, was trading around this level on Thursday morning.Morgan Stanley has started coverage of Pets at Home with an 'underweight' rating, highlighting concerns that the business is "becoming very over-spaced".With one of the largest out-of-town store estates in the UK retail sector and its sales densities peaking in 2010, Pets at Home's categories are "vulnerable to Internet channel shift", Morgan Stanley explained. What's more, the retailer plans to continue opening 20-25 new stores every year, which are usually on 15-year leases.BC