MCB

The 27% profit on the ‘buy’ rating on McBride (MCB) from Dresdner Kleinwort’s Charles Manso de Zuniga ranks the analyst’s tip 25th in Shares’ table of the best 50 broker calls over the past three months.

The analyst upgraded the stock at 83p, just 13% off the year’s low. The subsequent strength is due mainly to two factors: the $40 fall in the price of oil and the recent results, which were better than some brokers anticipated.

Although Dresdner has not altered its recommendation, perhaps inhibited by its role as house broker, others have.

Goldman Sachs has a ‘sell’ rating on the stock, and Deutsche rates McBride a ‘hold’ with a 115p price target.

Although the oil price has fallen the impact has been partially eroded by the weakness of sterling. Other input costs also continue to rise and retailers are asking for price cuts from the producer of laundry, household cleaning and personal care items following the oil price fall. Deutsche believes ‘McBride is unlikely to keep much of any input cost relief’.

by John Marshall