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Cantor Fitzgerald downgraded BAE Systems to “hold” from “buy”, although the broker said that despite increasing geopolitical risks and operational requirements, it felt that the defence company was “entering a period of relative calm”. It retained a target price of 460p.
Westhouse Securities downgraded its “buy” rating to “neutral”, following a 23 per cent move in share price to 219p, after the news that Dragon Oil was preparing to make a cash bid for the company at 230p. The broker said it did not believe a competing bidder was likely to emerge.
WH Ireland reiterated its “buy” rating, stating that while four years ago the company was in a net debt position of almost $20m, it yesterday reported a net cash position of $1.5m reflecting not only a £4.5m equity injection in 2012, but also strong cash generation from operations.