Citigroup issues Ferrovial with a “buy” recommendation and said that since January 2009 Ferrovial has sold €3bn (£2.5bn) of assets. Citi said new greenfield projects which require less up-front equity are the preferred target for new investments and management noted higher returns due to more limited competition.
Evolution Securities said Diageo is increasingly attractive and have suggested an “add” rating. Evolution Securities expects a combination of re-rating and earnings upgrades to drive the shares to its 1,200p target price on a three to six month view. Evolution Securities said that the short-term attractions of Diageo are strong.
Standard & Poor’s Equity Research upgraded Severn Trent from “sell” to “hold” and said management is confident it can meet Ofwat’s targets for the 2010-15 regulatory period, based on operational and efficiency improvements, including its approach with contractors, office rationalisation and IT system upgrades.