Analyst Report

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1 Analyst Report Stock: easyjet PLC L,lldfdfdfddfgddd Time Horizon: 6-12 months Share Type: Bluechip (FTSE100) Current Price: 1579p Price Target: 2100p Despite the disruption of air traffic strikes easyjet is expected to increase its bottom line by 20% in the current year and by a further 12% next year. Given easyjet is trading on a PEG ratio of just 0.7, they offer a wide margin of safety which means they appear to offer excellent value for money, even if there are further downgrades to its forecasts. easyjet has also posted a profit for the first time during the winter months despite traffic disruptions. The company reported a 7m profit verses a 53 loss in 2014 for the same period. This represents a significant mile stone. Recent market volatility has pushed easyjet plc below the daily 200MA, which we consider to be a good value area. Technical signals show traded volume has been decreasing since mid-april. This an early sign of technical divergence indicating we maybe close to a price bounce higher. The daily RSI is also showing positive divergence. Panmure Gordon and Numis have a 20 and 21 price target respectively. This indicates 32% upside from current price.

2 Apple Stock: Prudential PLC Recommedation: Time Horizon: 8 BUY months Current Price: 1575p Price Share Target: Type: Bluechip (FTSE100) T Target Price: 1900p i m e 13.4% Pullback since the 25 th March Stock has retraced to a strong area of technical daily support at 1583p, H previously resistance in Dec Daily RSI has been oversold and is now pointing higher. o PEG ratio of 0.95 indicates great value r for this stock. A PEG ratio below 1 indicates stock is undervalued based on PE/ earnings growth. i z Prudential is more diversified geographically o when compared to Aviva, Legal & General, and Standard Life. Prudential s profits come from the USA (37%), the UK (33%) and Asia (30%). The company has been able to post 5 years of successive n profit growth and expects its bottom line to 28% bigger in 2016 than it was in : SocGen have re-iterated a BUY rating Son Prudential with a 1951 PT, indicating a 21% upside from current price. h o r t t e r m ( 6-8 m o n t h s )

3 Stock: Shire Pharmaceuticals Share Type: Bluechip (FTSE100) Current Price: 5222p Time Horizon: 6-12months Price Target: 6000p PE of 12.8 verses a sector average of PEG ratio of 1.07 indicating stock is undervalued based on growth. (Comparable PE: AZN 35.8, GSK 21.4, HIKMA pharma 20.9). 11% Pullback from year highs. Shire and Hikma pay out just 7% and 19% of profit as a dividend respectively, which gives those yields of only 0.3% and 0.9%, but indicates that they may offer higher growth rates than AstraZeneca. Shire have stated they are starting 2015 with their strongest ever pipeline. Stock is trading at the lower end of 3 month range support 5100p.

4 Stock: GW Pharmaceuticals Plc Share Type: (AIM) High Risk Current Price: 664p Time Horizon: Long term Price Target: 800p GWP has the edge on similar companies because their product will be on the only cannabis satvia product that has gone through all clinical trials. The biggest risk is to the share price is that if GWP does not get approvals for Epiodiolex - this will severely set back GWP. The company is set to release additional Epidiolex data at the American Academy of Neurology that should inform developments in other orphan epilepsy. It should be noted that the rally which took place on the 13th March 2015 happened on extremely high volume for the issue of nearly two million shares vs. its 20-day average of 325,000. Investors may be anticipating positive results as the company is set to release additional Epidiolex data at the American Academy of Neurology that should inform developments in other orphan epilepsy. Over the past year, the issue has fluctuated primarily based on news concerning the drug and not so much on developments related to marijuana.

5 Due to this being a technical note, some of the language used may be difficult to understand. We would recommend you speak with our Technical analyst if you are unsure of any points mentioned in this report. Thames Capital Market Limited Trade Definitions: LONG (Buy): The stock/security/index is expected to appreciate to the mentioned target levels. SHORT (Sell): The stock/security/index is expected to depreciate to the mentioned target levels. NO TRADE: The analyst has a neutral view on the market or maybe feels the necessary risk/reward ratio is not available to take on a position in current market conditions. Source of Information: Please note that all data for this research note has been sourced from Bloomberg, Sharescope, Financial Times, Google Finance and Reuters news feed, or has been made public by the company in question. ANALYST CERTIFICATION: The analyst who has compiled this report states his personal view about the subject security, which is reflected in the ratings as well as the substance of the report Key to Material Interest: Please be aware that the following disclosures of material interests are relevant to this technical note: Security/Index: easyjet plc, Shire Plc, Prudential, GW Pharmaceuticals. Relevant Disclosure: 1 1. The analyst has a personal holding in the securities issued by the company or of derivatives linked to the price of the company s securities. 2. Thames Capital Markets Ltd has clients who hold either shares or CFD positions in this security. ANALYST RECOMMENDATION: This document does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment or currency will depend on an investor s individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for all investors. This research is non-independent and is classified as a Marketing Communication under FCA rules. As such it has not been prepared in accordance with legal requirements designed to promote independence of investment research and it is not subject to the prohibition on dealing ahead of the dissemination of investment research in COBS The information contained in this report has been obtained from sources that Thames Capital believe to be reliable however we make no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information. Thames Capital Markets hold no responsibility for any losses arising from any investment based on this recommendation or any previous analyst notes. RISK WARNING: Trading in the products and services offered by Thames Capital Markets Ltd may result in losses as well as profits as the value of the investment may go down as well as up. Trading Contracts for Difference (CFDs), derivatives, commodities and Foreign Exchange (FX) maybe subject to rapid and unexpected price movements. Past performance is not necessarily a guide to future performance. Trading in global markets is generally considered to be suitable only for the more experienced investor as it poses a risk of losses to your capital. An investor may lose all of their capital and in certain circumstances may be liable for a sum that is greater than their original investment. Tax treatment depends on your individual circumstances and may be subject to change in the future. You should only speculate with money you can afford to lose. CFDs, spread bets and Foreign

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