The temporary power supplier’s first half results were slightly better than expected last week, prompting Citigroup to raise its earnings per share estimates for the full year by 2.4 per cent. The broker believes the company’s continued ability to reinvest in itself merits a “buy” recommendation, with a target price of £17.33.
Nomura expects cash returns to shareholders to accelerate, with the possibility of a buyback, after the drinks group’s decision to increase dividend payments last week. The broker remains upbeat about spirits sales in the long-term, but has lowered its target price to £14.50 to reflect a slower economic recovery in the US. “Buy”.
F&C ASSET MANAGEMENT
JP Morgan is concerned that the asset manager has sent mixed messages by lowering its interim dividend to shore up the group’s capital strength. The broker saw improving operating trends in the firm’s results last week, but will not re-rate the stock until it sees continued progress. It retains a “neutral” rating with a 62p target.