Morgan Stanley has repeated its “equalweight” rating on the leisure group and hiked its target from 2,900p to 3,400p to reflect a better outlook across the sector. The broker sees Whitbread as a high quality investment but believes there is a margin risk that it not yet factored into forecasts.
BRITISH AMERICAN TOBACCO
Barclays keeps its “overweight” rating for the tobacco group and nudged up its target by 50p to 4,000p. The broker reckons the market is underestimating the value of BAT’s new computer platform to margins, and thinks the drop in sales volumes is levelling out.
Numis believes investors should “add” shares in the publishing group ahead of its full-year results next week, and has kept its target price at 1,164p. The broker thinks the results are predictable but reckons the outlook for advertising revenues for the rest of the year will be crucial.