Digital Look broker talk

9th Nov 2011 11:10

Admiral: "Admiral's superior profitability has long been a mystery to us, but it now looks as if the apparently superior risk choice is being unwound... We see this IMS as an admission that Admiral is not immune from market forces and this will disappoint the market, we believe" [Investec].Tullow Oil: "The short term takeaway from today's IMS is slightly disappointing even though the market has been aware of the Jubilee ramp up issues for a while. More importantly the big picture for Tullow remains very strong" [Evolution Securities].InterContinental Hotels: "Lower room growth in 2012, an uncertain trading outlook and reduced likelihood of asset disposals and hence cash returns means catalysts are limited and we don't see the 14.6x 2012E PE as sufficiently cheap" [Credit Suisse].HSBC: "Given our expectations that revenues, costs and returns are likely to continue to disappoint against inflated sellside estimates (with 'lower for longer' interest rates constituting a material part of that rather obvious drag), we see better value elsewhere" [Evolution Securities].Sainsbury: "We think that the shares are reasonable value, but rather lacking in the wow factor...With an NAV of 290p, rising to 489p if today's property revaluation is included, we don't think that the shares have downside" [Panmure Gordon.SuperGroup: "The statement today shows solid growth in total sales, and a particularly impressive growth from the wholesale division, and now the management team look to have largely resolved the distribution issues, in the opinion of Prime Markets an upward re-rating for Supergroup shares is now due" [Prime Markets].BC