TRADER TIPS: City insiders say buy oil firm Serica as it snaps up two key assets for £15.4m but sell lacklustre satellite firm Inmarsat
Serica is on Peel Hunt’s buy list after the oil and gas firm bought two key North Sea assets from Total for £15.4m
BUY THIS: Serica Energy
Serica is on Peel Hunt’s buy list after the oil and gas firm bought two key North Sea assets from Total for £15.4million. Analysts believe the deal will not knock earnings, but could boost Serica’s financials, highlighting its ‘ability to identify and execute on commercial opportunities that have potential to add substantial value, where others might see complexity’.
SELL THIS: Inmarsat
After satellite firm Inmarsat released lacklustre half-year results last week, Numis recommended a ‘sell’. It said Inmarsat’s management ‘expects no meaningful changes’ to existing performance forecasts and set a lower target price of 430p. On Friday, Inmarsat closed trading at 550p. Last month, the firm rejected a £3.2billion bid from US rival EchoStar, which then walked away.