Broker boost for BP plc + Aviva plc as under-pressure shares are seen to offer investors further upside

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Broker boost for BP plc + Aviva plc as under-pressure shares are seen to offer investors further upside

Details: Category: Share Price Drivers; Published on Monday, 11 March 2013 10:06; Written by Will Peters

Aviva plc (LON:AV) had a rotten time last week as investors punished the stock on the back of news that the firm's dividend is to be cut.

Anyone hoping for a sharp recovery will likely be disappointed; however there are those that see the stock as oversold. Today we see Aviva 1.1 pct down at 320.

Latest news items:

Today we hear from Bank of America Merrill Lynch who say they are keeping AV on a Neutral rating. However, they have raised their target price on the stock to 350 from 330.

Citigroup are also backing Aviva by keeping their Buy rating on the stock intact. However, analysts at the bank say they are lowering their target share price from 479 to 432.

BP Plc: There are potential gains to come

BP Plc (LON:BP) is another stock that is under pressure as the Macondo saga continues to grind on and sector peers continue to underperform generally.

Deutsche Bank have however told investors today that they are keeping their Buy rating on BP while raising their target share price on the stock to 520 from 500.

Meanwhile, Exane BNP Paribas have kept their Outperform call and target share price at 575 intact. BP shares are currently outperforming the broader markets - the stock is 0.61 pct higher on Friday night's closing level at 453.46.

What can investors look forward to today?

Turning to the markets we see there is very little by way of movement but there are a spattering of events to look forward to.

Mike van Dulken, Head of Research at Accendo Markets says:

"In focus today, amid a slow macro line-up, is French industrial data which is seen remaining under pressure and weak on both a monthly and yearly basis.

"Italian GDP will be watched given the political deadlock which persists, the ratings downgrade late on Friday and electorate rejection of austerity while the country remains in recession which could soon turn depression.

"This week, watch out for the European summit which is the first since the inconclusive Italian election and could see pressure piled on whoever prevails, be they political, technocratic or technical from Eurozone peers.

"Elsewhere, data of note includes UK Industrial Data tomorrow which is seen highlighting continued and warranted concern for the economic outlook. US Retail Sales on Wednesday will be watched for evidence of consumer demand."