Goldman Sachs issues a “neutral” rating for Nokia as the broker thinks the phone group will continue to trade in-line with near-term earnings momentum, which it believes is turning positive. However, the broker says the long-term risks to Nokia’s smartphone share remain high and warns the stock could prove a “value trap”.

JP Morgan Cazenove cuts Prudential to “underweight” from “neutral” and doesn’t see much upside in the current share price. The broker thinks the Pru seems to have avoided the worst pitfalls that have hurt some in the industry and raises its 2010 pre-tax operating profit forecast by 10.6 per cent but expects a flat 2011.

Nomura hands SABMiller a “neutral” rating and thinks that short-term expectations of a renewal of volume growth towards the company’s medium-term guidance may be unrealistic. The broker still expects mixed news flow in the key markets with the impact of the VAT increase in Colombia holding back better revenues.