Brokers' views: Canaccord Genuity

Canaccord Genuity has upgraded price targets for two of the companies the broker follows this month.

Its buy stance on oil and gas counter Valiant Petroleum is reiterated, although Canaccord has increased its 12-month target price for the AIM-listed concern from 723p to 815p a share.

The target price upgrade for Valiant – presently priced at 675p with a £265 million tag – follows an encouraging update on the results of a ‘drill stem test’ on the company’s West Tybalt well, which confirmed the presence of light oil with an API (American Petroleum Institute) gravity of 38 to 40 degrees. ‘The test result on the West Tybalt well is clearly positive,’ enthuses Canaccord, ‘and serves to further de-risk the combined (East & West) Tybalt discovery.’

Take a bet on IG Group
At the larger end of the London markets, the broker’s recommendation and target price for financial derivatives trading and sports betting concern IG Group have been raised from hold to buy and from 400p to 485p respectively following an upbeat pre-close trading update.

Analyst Ian Poulter says the positive missive from FTSE 250-listed IG Group, covering the financial year to May, reflected a strong end to the year, with revenues and profits ‘consequently flagged to be 2 per cent and 10 per cent ahead of our prior expectations respectively’.

IG, led by CEO Tim Howkins and with a strong recent track record, now expects to report May 2010 revenues of £298 million, up from £257 million, and adjusted pre-tax profits of around £157 million (2009: £125.9 million), giving annual sales growth of 16 per cent and a 25 per cent profits increase.