Friday tips round-up: Admiral, AstraZeneca

26th Apr 2013 08:41

With the motor market under a great deal of regulatory and political scrutiny, The Times' Tempus column has recommended investors to stay clear of Admiral following its 'unimpressive' trading statement on Thursday.The paper said that Admiral gave its critics plenty of ammunition yesterday, revealing a flat UK car insurance vehicle count and a fall in premiums and revenues in the first quarter. Meanwhile, overseas markets are showing growth but are still not profitable and may take some time to add to the bottom line.The company has seen impressive profit growth since it was founded over 20 years ago but Tempus reckons that some "daunting obstacles" - falling premiums and a ban on referral fee payments - suggest that this stellar growth has come to an end. The paper said: "The shares yield a chunky 6.7%, which is high for the sector. But, despite the attractions, there is simply too much uncertainty. Avoid."According to the Financial Times' Lex column, there may be a lot about AstraZeneca not to like, but it is too early to give up on either new Chief Executive Pascal Soriot or the company. FIrst-quarter results revealed 13% fall in revenue while core operating profits were down by a quarter as the patent cliff took effect. Meanwhile, its Brilinta cardiovascular treatment continues to underwhelm. It is still early days for the product with Soriot insisting that its would beat sales estimates by 2018, but the paper warns that it is "imperative" that Brilinta both delivers and that Astra doesn't become too dependent on it.The FT says that at a strategy presentation to investors last month, Soriot succeeded in a "necessary first step" of restoring the company's credibility. "Since his arrival, AstraZeneca's valuation gap with peers has narrowed a bit, to about 40%. That may be as good as it gets, for now."Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.BC