During the month of September, Morningstar's team of equity analysts updated their research reports, adjusting fair value estimates, uncertainty ratings or writing analysis on recent company developments, on 27 FTSE 350 stocks.
Below is a taster of the updated research, triggered by major M&A, potential industry disruption and an analysis transfer. Click a company name to read the full report. (Morningstar Research is available to Premium members.)
Company M&A
Xstrata (XTA) and Glencore International (GLEN)
Xstrata's board of directors announced yesterday that it would recommend shareholders vote in favour of Glencore's revised terms for a merger between the two entities, increasing the probability of a deal. Our published fair value estimates of 340p for Glencore and 1,050p for Xstrata reflect our belief that the deal will be consummated under the revised terms. Xstrata's board indicated the deal is expected to close by year-end, but regulatory approvals in the European Union, China, and South Africa remain outstanding issues.
Industry Risk
Admiral Group (ADM)
Insurance regulators in the UK have launched an investigation into the car insurance industry, a move that could have implications for Admiral Group. We are aware of the government's attention to these matters and recognise the potential for lower returns for Admiral and other car insurers.
Valuation Upgrade
Imperial Tobacco (IMT)
As we transition coverage of Imperial Tobacco to a new analyst we are increasing our fair value estimate to 2,400p per share. We think Imperial Tobacco's scale, its portfolio of brands concentrated at both the high and low price points across several tobacco categories, and the addictive nature of its products give the firm a wide economic moat.
Further Updates
Click a name below to read the research on the other 24 companies updated in the past month: