Broker recommendations help us understand companies and measure the investment value of a stock. The good analysts who dig deep into research and find uncovered gems can save you the time and effort of doing research yourself.
Analysts tend to cover the most popular stocks and companies that have a large market capitalisation. Finding a company that analysts are just starting to review gives you an advantage, because the research and guidance is available but the herd has not yet arrived.
Analysts usually only initiate coverage with a bullish outlook, and because they increase visibility of the company the stock can have more investment activity in the short term. A new recommendation can give portfolio managers the validation they need to build a position.
Who’s New In The Spotlight?
Investment analysts at Berenberg Bank initiated coverage on shares of Ashtead (LSE: AHT). Ashtead is a construction and industrial-equipment hire company and is a recent addition to the FTSE 100; its current market capitalisation is £4.57bn.
Berenberg set a buy rating and a £11.10 price target on the stock. Berenberg’s target price would indicate a potential upside of 22.58% from the company’s current price of £9.06. From a total of 13 analysts covering the company, one has rated the stock with a hold and 12 have assigned it a buy. The company has an average price target of £10.35.17.
UK Mail Group (LSE: UKM)is now being covered by Cantor Fitzgerald Europe, and they have set a buy rating with a £7.00 price target on the stock. Cantor’s price target would suggest a potential upside of 17.25% from the company’s current price of £5.97. UK Mail Group is a holding company of UK Mail Limited and UK Pallets Limited. UK Mail is the UK’s largest independent express delivery company, and UK Pallets provides a network for independent logistic and distribution companies.
Alent (LSE: ALNT) is a supplier of chemicals to the electronics, automotive and industrial market, and has now been picked up by Liberum Capital. Liberum initiated coverage on shares with a buy rating and a £4.00 price target on the stock. Analysts at Espirito Santo Investment Bank Research have also initiated coverage on shares of Alent and set a buy rating of £4.30 price target.
