<strong>BT GROUP</strong><strong></strong><br />JP Morgan downgraded BT to “neutral”, saying that the group delivered on earnings in its first-half, but that there is reduced upside and scope for positive surprises. This and the increased pension liability drove the downgrade to the broker’s valuation, with the target price dropping to 170p. It believes the pending pension review will limit near-term performance.<br /><br /><strong>KINGFISHER</strong><br />UBS upped its target price for Kingfisher from 250p to 270p and retained its “buy” recommendation, ahead of its third-quarter results. The broker forecasts like-for-like sales to be up by five per cent for B&Q, helped by weak comparatives ,clearance of stock and operational movements. The firm will update the market on 3 December.<br /><br /><strong>RIO TINTO</strong><br />Investec said that it is pleased with Rio Tinto’s decision to increase its capital spend in 2010, allowing it to invest in future growth. It upgraded its target price to 3,325p, based on its net present value estimate. However, the broker reduced its recommendation to “hold” after an almost 20 per cent rise in the share price since October.