Goldman Sachs has reiterated its “sell” rating for the security firm and downgraded its target price to 194p from 200p, indicating an 18 per cent potential downside. The broker thinks that the industry’s structural weakness will have negative impact on the firm. Goldman also said there is a risk of another profit warning when the firm reports results in August as gross margins continue to decline.
Numis Securities has downgraded the pub group to “hold” from “add” with a target price of 815p ahead of the firm’s final results next week. The broker cites recent share strength as the main incentive for the downgrade. The broker expects to maintain its forecast of a seven per cent increase in pre-tax profits to £162m, which is in line consensus figures.
GULF KEYSTONE PETROLEUM
Cantor Fitzgerald maintains a “buy” recommendation for the Aim-listed petroleum company but significantly reduces its target price to 235p from 520p. The broker said that ongoing disputes between Iraq and the Kurdish regional government have hindered the creation of an oil law. Despite the risk of political instability, the broker said the company continues to deliver strong operational results and reiterates its positive outlook.