Broker tips: BP, Admiral, Dana Petroleum
Credit Suisse has raised its rating on BP to 'outperform' from 'neutral' following the oil giant's strong first quarter results yesterday.
The broker said yesterday's results exceeded first-quarter earnings expectations. Future earnings will be driven by strong oil prices and - perhaps more importantly - rising gas prices, Credit Suisse said.
Citigroup has upgraded its recommendation on Admiral to 'buy' from 'hold' after the insurer said it was on course for another record year yesterday.
While still foreseeing problems for the company - such as increased competition for its Confused.com website - the 20% drop in its share price since Citi downgraded it to 'hold' in March has been overdone, the broker said.
Admiral's optimism points to 2008 profits of around £194m, compared with £182m in 2007, Citi said.
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Positive broker comment on the back of strong full year results failed to boost Dana Petroleum's share price this morning.
Dana, which produces and explores for oil and gas in the North Sea and Europe, saw pre-tax profits in the year to December 31 climb to £143.3m from £97.1m in 2006, on revenues that jumped to £311.5m from £215.3m.
The figures prompted Merrill Lynch to reiterate its 'buy' recommendation and 1,785p price target.
However, shares in Dana slipped back slightly as investors took profits.
