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ROYAL BANK OF SCOTLAND
Espirito Santo has a “neutral” rating and a fair value of 365p for the banking group, despite additional litigation and conduct costs amounting to £3.1bn. The broker expects that RBS will have sufficient capital to cover anything coming down the line, including the ongoing FX probe.
Canaccord Genuity has reiterated its “hold” rating with a target price of 300p for Chesnara, based on a good track record and positive merger and acquisition prospects. The broker played up the insurance buyout firm’s competitive advantages and the limited regulatory risks it faces.
UBS has issued a “buy” rating for the oil and gas company and set a price target of 1230p, down from 1400p. The company issued a profit warning a week before its results are due, but UBS is optimistic that a new CFO joining the CEO and chairman may help turn things around.