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Canaccord Genuity expect that the FTSE 250 investment fund Brewin Dolphin’s fourth quarter revenues will be hit by a downturn in the markets. The broker has maintained its “buy” rating, but lowered its target price from 357p to 309p as it expects the recent volatility to reduce full-year profit before tax in 2015 by 3.7 per cent to £62m, and by as much as 16.6 per cent for 2017.
Coach and train operator First Group underperformed the FTSE 250 by 12 per cent in July, hit by low fuel prices that reduced demand for their Greyhound bus services in the US, as people drove instead. UBS feels this makes them more attractive than their peers now, especially on the back of solid rail growth in the UK, so has upgraded from “neutral” to “sell”, with a target price of 108p.
Accendo Markets issued a “sell” recommendation on gold miner Randgold Resources. The broker commented on the fact that gold, traditionally seen by investors as a safe haven, has failed to benefit from recent market uncertainty. It noted that “years of raw material over-investment amid high prices is starting to bite with supply gluts and expensive restructuring required to maintain profitability”.