Market Report: Investec upgrades artificial hip specialist Smith & Nephew
Saturday 29 March 2014
Investec is calling for the break-up of the artificial hip specialist Smith & Nephew.
Nicholas Keher at the broker thinks the company is “beginning to look like a growth stock again”, upgrading it to a buy.
But he thinks the expansion of the scale and geography of the business has run its course and the best thing now for shareholders is a three-way split into the three wings of wound management, endoscopy and orthopaedics.
Mr Keher said: “Each division has sufficient scale and market share to operate individually. Moreover, we think each operates with such distinct business models that they require different strategies for capital allocation.” Investors were taken with the talk, sending Smith & Nephew up 21.5p to 921.5p.
The outsourcer G4S was given a fillip by the independent broker Redburn, which thinks the series of scandals that hit the company last year have overshadowed its underlying growth potential. G4S added 5.1p to 237.9p.
Brit Insurance returned to market with a whisper rather than a bang, closing at 226p, below its 240p listing price.
News of an inquiry in the pensions sector saw life insurers knock 8.82 points off the Footsie, but the index was propped up by a buoyant mining sector amid signs that China’s government will act to stimulate growth if necessary. The FTSE 100 added 27.26 points to 6,615.58.
On Aim, a jump in the shares of Bellzone Mining forced it to confirm that one of its investors could be gearing up for a bid. Bellzone said it was in talks with China Sonangol International Singapore about securing additional equity capital, which “may or may not lead to an offer being made for the company”. Bellzone added 0.2p to 3.22p.
Strategic Natural Resources, hit by litigation in two countries, recovered slightly, up 1.37p at 4.37p, after saying it was “hopeful” of reaching a deal with potential investors.
The property regeneration specialist St Modwen said in a trading statement that is benefiting from the UK’s housing recovery. But there was no word on its New Covent Garden Market project, and St Modwen fell 0.9p to 399.3p.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 3 Fight Club 2: Chuck Palahniuk sequel is a 'meta-fictional comment on the cultural response to the original'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Hacking Trial: Rebekah Brooks, Raisa and a new twist in the saga of a horse fit for a Prime Minister
Israel-Gaza conflict: Palestinian death toll now exceeds 500 – but Israel fights on
Income tax league: Revealed - the UK towns where people pay the most and least tax
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...