Espirito Santo has downgraded the electricity provider from a “neutral” to a “sell” rating after cutting profit forecasts. The bank warns that delayed starts to delivery mean that recent contract wins will not bear fruit for some time, and has reduced profit forecasts by around a fifth fro both 2014 and 2015. However, Espirito Santo has retained its 680p target price on the stock.
Investec has upped its target price on the funeral services company from 1,404p to 1,424p, but reduced its rating from “buy” to “add” after a stock market rally. The broker says it continues to be confident in Dignity’s future, with a profit upside due to corporation tax cuts and says it expects the company to return cash to shareholders later in the year.
Goldman Sachs yesterday reduced its rating on the engineering group from “buy” to “neutral” after two years of recommending investors purchase the shares. The bank said that after steady price rises, the shares are now fairly weighted and there is not as much potential for growth. However, Goldman has upped IMI’s target price from 1,350p to 1,400p in line with recent share rises.