New Morningstar Research on 27 UK Companies

During September, our analysts have written new research on no fewer than 27 FTSE 350 companies

Holly Cook 2 October, 2012 | 4:57PM
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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:

 Anglo American (AAL)

 Aviva (AV.)

 BAE Systems (BA.)

 Beazley (BEZ)

 BG Group (BG.)

 BHP Billiton (BLT)

 BP (BP.)

 Carnival (CCL)

 Compass Group (CPG)

 Diageo (DGE)



 Johnson Matthey (JMAT)

 Lloyds Banking Group (LLOY)

 London Stock Exchange Group (LSE)

 Morrison Supermarkets (MRW)

 National Grid (NG.)

 Prudential (PRU)

 Randgold Resources (RRS)

 Rio Tinto (RIO)

 Rolls-Royce Holdings (RR.)

 Standard Chartered (STAN)

 United Utilities Group (UU.)

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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About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites