UBS has cut its rating on the engineering group to “neutral” and lowered its price target from 1,200p to 1,145p. The broker raises concerns about a possible slowdown in Amec’s end-markets and believes earnings momentum, once acquisitions are stripped out, is likely to head lower.
Panmure Gordon keeps its “hold” recommendation and 950p target price following a meeting with the outsourcing group’s management team. The broker thinks Capita is poised for organic growth of eight per cent this year but sees rival Serco’s shares as better value at the current price.
LLOYDS BANKING GROUP
Investec has upgraded the bank from “sell” to “hold” and boosted its target from 65p to 76p. The broker thinks Lloyds will benefit from rivals being forced to strengthen their capital levels. Investec also believes Europe will grant Lloyds a deadline extension for its Project Verde sell-off.