Citi reiterates its “buy” rating on Meggitt saying its recent share price weakness is overdone. Acknowledges that first-half sales were disappointing, but is confident of a second-half recovery. Notes also that first half margins were significantly better than expected, and that cost-cutting continues. “Valuation remains compelling,” it says.
Morgan Stanley reiterates its “equal-weight” rating on RBS, saying it was reassured by last week’s results which it says marked a “solid quarter”. Believes the risks for shareholders are steadily reducing as retail and commercial banking makes up for the weaker performance of investment banking. Prefers RBS to Lloyds on valuation.
Investec reiterates its “buy” rating on Rolls-Royce following its recent results which it says indicate the group is returning to growth. Notes the share have drifted eight per cent lower since the results, and calculates they are trading at under 13 times 2011 earnings per share. Expects civil aerospace to see upside of 5-15 per cent.