JPMorgan Cazenove upgrades Aveva to neutral

20th May 2015 13:13

JPMorgan Cazenove raised its stance on Aveva to 'neutral' from 'underweight' and upped the target price to 1850p from 1220p.The upgrade is based partly on the oil price being stable in the $65 range, compared with less than $50 in January. JPM also noted that other end markets such as shipping and mining "have probably seen their worst days as well."It pointed to the company's proven ability to manage its cost base despite the tougher end market demand environment and noted the persistent M&A rumours in the press. "While no offer has officially been made, we see the strategic logic and viability of a possible deal," it said.JPMorgan now expects adjusted full-year earnings per share of 81.38p for 2016 versus its previous estimate of 75.02p and 2017 EPS of 85.88p, up from a previous estimate of 82.31p.