UBS has a “neutral” rating and 110p target price on the hedge fund manager, after it announced a 19p per cent share increase in paid-in capital last week, around 30 per cent more than UBS expected. Man recently said that it will be acquisitive, which the broker thinks will be helpful, as acquisitions could help the company in saving operating costs. Rising risk appetite in Japan is also seen as good news.
Panmure Gordon recommends investors “buy” shares of the electronics retailer, with a target price of 45p, up from 32p. The broker cut its forecast for the company’s pre-tax profits for 2014 and 2015, but offers the new higher recommendation due to Dixons’ almost debt-free balance sheet and the expectation of strong sales growth on their full year trading statement, due on 16 May.
LEGAL & GENERAL
Morgan Stanley rates the insurance and investment group “equal-weight” and has raised its target price from 157p to 184p following strong full-year results. The broker thinks L&G’s investment management unit remains underappreciated, given its profits track record during a difficult few years. Morgan Stanley also sees potential for a dividend hike as cash flow continues to grow.