JP Morgan Cazenove revisits its investment thesis on Standard Life and increases its rating to “neutral” from “underweight”. The broker can see the potential in what Standard Life is trying to do with its structural changes and says that if the insurer is successful, it should leave the group well positioned in the UK savings market.
Morgan Stanley upgrades Rolls Royce to “overweight” and changes its price target to 720p. The broker thinks civil aerospace margins, which have fallen from a 2007 peak, will recover within the next three years and believes that the market is missing the potential for improved profitability following the recovery in revenues.
Goldman Sachs believes Thomas Cook’s full year trading highlighted that bookings and prices were stable during the end of the summer season in the UK and trading in other markets are in line with expectations. The broker maintains its “buy” rating on the travel operator, despite the £10m impact from unexpected costs in the UK.