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Shore Capital has reiterated its “buy” rating with a target price of 695p. It said: “We believe the soft drinks market in the fourth quarter of Britvic’s financial year – July to September 2015 – was a particularly challenging period for the market.” Shore expects revenue to be weaker “due to deflation in the soft drinks market, where prices are in part reflecting the significant reductions in input costs”.
UBS has reiterated its “buy”rating, but it has lowered its target price to 355p from 360p. UBS said “it believes the valuation seems attractive, concerns round the Chinese automotive market, and the weaker growth is likely to be temporary while GKN’s mid-term growth prospects in China are solid”.