LLOYDS BANKING GROUP
RBS rates the bank “buy” but has reduced its target price to 105p from 120p, after Lloyds last week revealed a larger than expected impairment to its portfolio in Ireland. The broker adds that the bank’s underlying earnings power generation remains unaffected, but that it has downgraded some profit estimates up to 2012 because of the exposure to Ireland.
Execution Noble maintains its “sell” rating with a reduced fair value price of £10, down from £11.65. The broker believes the negative reaction to the firm’s interim results last week is the start of a longer-term price correction, on the back of significant risks within the Supergroup growth model. The broker has cut its earnings per share estimate for 2011 by 18.6 per cent.
RESEARCH IN MOTION
Nomura rates the owner of Blackberry “neutral” with a raised target price of $65 (£41.90) following last week’s results. The broker has upgraded its earnings per share estimates for the quarter by 12 per cent thanks to higher sales and better margins. It expects new product announcements in the new year, including the launch of the PlayBook tablet computer, to drive the share price further.