Bank of America Merrill Lynch cuts its price target for Inmarsat to 700p from 725p warning it has “several structural” issues, against a deteriorating macro environment. Says Harbinger using its option to use Inmarsat’s US spectrum, worth £1.50 a share, is a possible positive, but adds this won’t happen in 2010.
RBS recommends buying Amec ahead of its 26 August results. Expects sales to be up three per cent year-on-year with a 13.3 per cent jump in EBITA. Is confident of upgrades for 2011 due to order book momentum. Calculates shares are trading at 12.9 times 2010 price to earnings ratio – a significant discount to peers.
Collins Stewart advises shareholders to “sell” Diageo ahead of its full-year results on 26 August as anticipates nothing to drive the shares upwards. Says a resurgence in Diageo profit growth depends on healthier trade in markets such as Ireland and Southern Europe where unemployment remains high.