Numis retains its “add” rating on sports retailer Sports Direct after a solid year, with ebitda of £160m in the year to April. But it has revised the ebitda forecast for this year down £7m to £195m due to a tougher trading environment. Nonetheless it believes the business has a strong internet sales opportunity.
Investec has put a “hold” rating on BSkyB with a price target of 700p based on an assumed takeover at 775p in six to nine months time. Investec notes the key investment risk is if News Corp walks away from any deal, but forecasts a five per cent earnings per share increase by the end of 2011.
J P Morgan has raised its earnings per share forecast for BAE Systems after a strong industry performance in the first half of the year, plus growth in all divisions and a seven per cent increase in organic sales. With the seasonally stronger second half to come it
maintains its “overweight” rating.