Royal Bank of Scotland rates the betting group a “sell” with a target price of 90p. The broker says Ladbrokes is facing limited growth in betting shops as well as tighter European restrictions on internet gambling. RBS forecasts a 10 per cent growth in revenue over the next two years, but expects competition from rivals to intensify.
UBS maintains a “buy” rating on the insurance group with a reduced target price of 163p. The broker believes that OM’s stake in Nedbank will be sold in the long-term, despite HSBC walking away last week, and that the group has an achievable strategy to pay down its £1.5bn by 2012 without the sale.
Standard & Poor’s maintains its “sell” rating with a 12-month target price of 130p. The broker says the government’s spending review will be negative for the telecoms group in the long term, even though the firm said last week there will be no change to its 2011 outlook. It also sees a risk of smaller rivals eroding BT’s market share.