Broker tips: Aston Martin, Prudential, Senior
Citi stood by its 'buy' recommendation and 600.0p target price on Aston Martin stock following the carmaker's announcement of a capital increase.
The agreed £500m fund-raising meant the potential overhang from selling new shares and risk stemming from its Vantage model were "largely removed".
Now it was "all about the DBX", the manufacturer's first luxury SUV, and delivering on its launch.
"With shares discounting circa 12% cost of equity compared to Ferrari at 6% even after a bigger than expected capital raise we see a highly favourable risk-reward profile."
For analysts at Deutsche Bank, Prudential's recent share price weakness was set to be temporary.
To back up their case they pointed to the limited duration of recent epidemics as well as their analysis of the asset manager's exposures.
In the short-term on the other hand, the "considerably" faster pace of increase in the number of confirmed cases of the 2019-nCov virus versus the 2003 SARS epidemic meant that sentiment could remain "nervous".
Indeed the so-called Wuhan virus outbreak was coming on top of the pre-existing impact of civil unrest in Hong Kong.
Deutsche kept its recommendation for the shares at 'hold' with a 1,500.0p target price.
Analysts at Berenberg slightly lowered their target price on aerospace and defence firm Senior from 185p to 175p on Monday, but stated that a lower 737 MAX outlook appeared to be already priced in.
Berenberg highlighted that Senior had already provided initial guidance on the expected impact of lower Boeing 737 MAX production on 2020 financials and said that the lower outlook came as no surprise - given that production had been suspended since the start of the year, and both Boeing and suppliers had indicated a slower-than-previously-anticipated production recovery.
However, the German bank said that the fact that Senior shares closed down by just 30 basis points on Friday demonstrated that much of this lower outlook was already in the price.
Nonetheless, the cuts to its earnings estimates were significant, down 31% in 2020 and 22% in 2021, and Berenberg said it could not yet rule out further downside - given remaining uncertainty on production rates among several customers over the medium-term.
"We maintain our 'hold' recommendation and await further clarity, trimming our price target to 175p," said Berenberg.