Johnson Matthey; Chemicals
Price change since 14 April UK Index highs: -24%
This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
JMAT daily chart
(Click image to enlarge)
Will the price bounce back up towards 3600p or will it fall beneath support at 2500p?
Observations: Shares in JMAT are currently at levels not seen since June 2013. Not a stock that tends to make big headlines, this could be one that’s off the radar of many an investor – but we can’t see any reason why that should be. JMAT is really best known for being a manufacturer of catalytic converters (using currently cheap precious metals to make parts for a ‘too big to fail’ automotive industry…) but it also has arms that deal with downstream oil & gas (the still–profitable part of that sector). So we’re left, as with so many other stocks, with sentiment towards China as the weight on JMAT’s shoulders. China’s economy might be slowing, but it’s still growing.
Bloomberg broker ratings: 59% Buy, 41% Hold, 0% Sell; Consensus Target: 3283p, +23% (1 Sept ’15)
Most Bullish: HSBC, buy, TP 3800p, +43% (10 Jul ‘15)
Most Bearish: Liberum, hold, TP 163p, +9% (22 Jul ‘15)
LLOY daily chart
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Will the price bounce up towards 90p or will it fall towards lows of 70p?
Observations: Lloyds has been a favourite among swing traders this year, offering countless entry and exit points as well as the odd bit of high volatility – the stock is only down 4% since April, but look where it went in between. Perhaps the least hated of the UK’s banks (It’s had a fair amount of PPI related wrist slapping but, with no investment banking arm to speak of, it’s managed to steer clear of allegations of interest rate rigging). The share price is no doubt a huge attractor: 75p! With brokers tipping the stock for 100p and above, and following a massive August equity market sell-off, the upside potential on LLOY now sits at >25%.
Bloomberg broker ratings: 57% Buy, 29% Hold, 14% Sell; Consensus Target: 91p, +21% (26 Aug ’15)
Most Bullish: JPMorgan, overweight, TP 105p, +39% (3 Aug ’15)
Most Bearish: Berenberg, Sell, TP 55p, -27% (18 May ’15)
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