Citigroup has upgraded the supermarket chain from a “neutral” to a “buy” rating, saying Morrisons has the strongest model of the UK’s three biggest supermarkets and that it is capable of turning this into better sales when it extends into the south. “We think Morrisons is well positioned to extend to southern England where it remains under-represented,” Citigroup said. Its target price rose from 280p to 325p.
Liberum Capital has upgraded its target price on the publishing and events business from 700p to 840p, and reiterated its “buy” recommendation, despite the company’s share price rising by 41 per cent in the last year. Liberum’s Ian Whittaker rates Reed Elsevier as a solid defensive stock, pointing to the solid growth in scientific journals and legal textbooks.
Investec has slashed the company’s target price by more than half and downgraded its rating from a “buy” to a “sell” after recent full year results – which disappointed shareholders – have led the bank to cut its forecasts for production and increase predictions for operating costs. Investec has reduced the target price from 274p to 128p and said London Mining’s iron ore production is a worry.