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Citigroup has cut the outsourcing group from “buy” to “neutral” and raised its target from 990p to 1,075p. After a strong run for the stock since the start of the year, the broker no longer sees a chance for a big re-rating, given the shares are now trading at 17 times next year’s earnings.
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The investment firm is a top pick for broker Numis, which has a “buy” rating and 480p target. Numis expects to see 20 per cent earnings per share growth and 30 per cent dividend rises in the next couple of years. Meanwhile it sticks to a “sell” rating on Man Group.
Morgan Stanley keeps its “equal-weight” rating on the aerospace and defence firm but hikes its target from 350p to 430p to reflect a relief rally for stocks in the sector. However, the broker thinks the market is being complacent about the risk from lower spending in the United States.