RBS rates the technology company “buy” with a target price of 625p. Hewlett Packard’s introduction of the Palm operating system on its PCs later this year could help ARM penetrate the notebook PC market, moving its market share from one per cent in 2011 to 20 per cent by 2015. RBS estimates that ARM’S earnings per share would be boosted by 2.25p for every 10 per cent unit share gain.
Morgan Stanley rates the UK bank “overweight” but has cut its target price from 400p to 380p. The broker believes better visibility on returns in several aspects of the business, including Barclays Corporate and impairment charges, could fuel better returns on equity. Morgan Stanley looks to Barclays’ full-year results on 15 February for an update on this strategy.
INTERNATIONAL AIRLINES GROUP
Investec has begun covering the newly-merged airline with a “hold” rating and a target price of 281p. The broker believes that the recent hike in jet fuel prices has more than offset any synergy gains from the British Airways / Iberia tie-in and predicts that the firm will underperform in the short-term. Investec forecasts earnings per share of 15 cents (12.7p) in 2011, nine cents below consensus forecasts.