Morgan Stanley rates the asset manager “overweight” with a target price of 200p. The broker believes that the market has underestimated the cost synergies of the firm’s tie-up with Gartmore, and believes Henderson can retain around 85 per cent of assets once the deal is complete. It adds that Henderson’s full-year results were inline with expectations and suggested a positive outlook.
Seymour Pierce rates the construction supplier “add” with a target price of £11. The firm’s results this week were better than the broker “had dared to believe”, showing an outperformance of a flat market. The broker has raised its forecasts for 2011 and expects a pre-tax profit of £296.3m, pushing the dividend yield up to 1.7 per cent. It expects the integration of BSS to be earnings enhancing this year.
RBS rates the media group “buy” and has raised its target price by 30p to 530p. Informa remains one of the broker’s favourite plays on late-cycle recovery, with revenue expected to grow this year after a flat 2010. RBS has raised its target following a rapid deleveraging of the firm’s balance sheet, and expects improved sales in the events, training and commercial information divisions to drive growth to four per cent in 2011.