Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Broker tips: GSK, Central Asia Metals
(Sharecast News) - GSK's $2.2bn payment to settle 93% of outstanding Zantac lawsuits in the US was close to the "best case scenario", according to Jefferies, which said the announcement should remove a significant weight on the share price. The broker reiterated a 'buy' rating and 2,000.0p target price for the stock after GSK said on Thursday that it has now settled about 80,000 Zantac lawsuits in the US after reaching an agreement with 10 firms that represent 93% of the Zantac (ranitidine) state court product liability cases pending.
Jefferies said that the settlement equated to around 40.0p per share and came in at the bottom end of its previous $2-3.5bn estimate and reckons that the stock should rise around 10% from the removal of most of the Zantac uncertainty.
"Dismissal of 93% of cases for $2.2bn nears our best case scenario, and should remove the majority of Zantac overhang on the stock. Importantly we believe the settlement cost is also well below most figures we have heard from investors," the broker said.
Analysts at Berenberg downgraded Central Asia Metals from 'buy' to 'hold' on Thursday and lowered its target price on the stock from 230.0p to 210.0p following the group's Q3 production results a day earlier.
Central Asia Metals said copper volumes from its Kounrad mine in Kazakhstan came in at 3,600 tonnes, just short of its 3,700-tonne estimate, while at the Sasa mine in North Macedonia, ore mined of 196,000 tonnes came in lighter than estimates for a 201,000-tonne print.
Zinc volumes of 4,800 tonnes were "a bit light" versus estimates of 5,200 tonnes and grades were 2.92% versus Berenberg's 3.05% estimate, meaning that the miss was a mixture of throughput and grades. Lead volumes of 6,900 tonnes were broadly in line with estimates of 7,000 tonnes.
The German bank pointed out that the company's guidance has been reiterated, with Sasa at the low end, highlighting that there had been no change since its previous guidance.
Berenberg also said growth projects at Sasa appeared to be on track, with the backfill plant operating consistently, and dry commissioning of the dry stack tailings plant now operating well, with the initial placement of the filter cake expected in Q424.
"We continue to think that Central Asia Metals is an excellent business, with strong FCF generation and an attractive (circa 8-9%) dividend yield. However, there is some risk to its 2024 guidance, and given the higher operational risk profile as the company adjusts its mining method at Sasa, we think that the market would prefer it to deliver on its guidance rather than give management the benefit of the doubt. Further, a M&A overhang remains a headwind for the market, with a deal still needed to diversify and grow the business," said Berenberg.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.