7 New Stock Research Reports

Morningstar equity analysts have published new reports on Vodafone, BAE, Lloyds and four more UK companies in the past week

Holly Cook 25 February, 2014 | 8:00AM
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In the past week, Morningstar's equity analysts have published new research reports on seven UK companies, triggered by financial results, M&A or our usual rating review process.

Our star rating for stocks compares the Morningstar analyst's free cashflow valuation for each stock with its current market price. One star implies the stock is significantly overvalued by the market, i.e. expensive, five stars implies the stock is significantly undervalued, i.e. cheap. A rating of three stars implies the stock is fairly valued. 

Vodafone (VOD) – Under review

We don't expect to change our estimates following Monday’s consolidation of 6 new Vodafone shares for each 11 previous shares, following court approval on the sale of US group Verizon.

BAE Systems (BAE) – 3 Stars

We’ve trimmed out fair value estimate to 434p following BAE’s financial results.

BHP Billiton (BLT) – 4 Stars

BHP has the wherewithal to weather the boom-and-bust cycles of the volatile commodity markets.

Centrica (CNA) – 4 Stars

Natural gas prices and higher production costs in the North Sea have reduced our optimism around Centrica’s 2014 operating profit.

InterContinental (IHG) – 3 Stars

Results improving in Europe and we’re raising our fair value estimate.

Lloyds Banking Group (LLOY) – 3 Stars

Legacy costs obscure the continued improvement in Lloyds’ core bank, we’re maintaining our fair value estimate.

Rexam (REX) – 3 Stars

Positive news in the latest results, including an increased dividend, but also some concerning trends.

See the full list of Morningstar research published in the past 90 days here.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BAE Systems PLC1,156.00 GBX-0.86Rating
Centrica PLC124.95 GBX-0.75Rating
InterContinental Hotels Group PLC9,956.00 GBX0.89Rating
Lloyds Banking Group PLC54.20 GBX-0.18Rating
Vodafone Group PLC66.50 GBX-0.84Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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