Digital Look broker talk

21st Nov 2011 12:09

Centrica: "Centrica has today announced major moves in the gas market. We believe that these are good moves that will underpin Centrica's position on both the Upstream and Downstream side" [Investec].Phoenix Group: "Any takeover of Phoenix would also represent the hope that more cash could be squeezed out of the business. It is not clear currently whether management have any significant levers it can pull in the short term to boost the cash emerging from the business" [Investec].Rockhopper Exploration: "We do not believe that today's news is price material, but operationally this is very important as more core samples will allow for a more successfully engineered development plan of the Sea Lion reservoir. Extensive coring will also increase the chances of a successful monetisation of the company's assets" [Merchant Securities].MITIE Group: "MITIE has delivered a solid in line set of interims. With further improved visibility and the opportunities before the business, in our opinion the risk to forecasts now lie firmly on the upside" [Peel Hunt].Chemring: "Sentiment has been weakening for several months and took a further knock last week. The downgrades now make it less likely that the group can continue its acquisition-driven strategy. Despite a placing earlier this year debt remains high and will slowly reduce through cash flow, but at a level that now probably constrains acquisitions" [finnCap].