Deutsche Bank rates the housebuilder “buy” with a 48p price target. The broker expects a slight drop in sales to £1.4bn when the firm reports its half-year results on Thursday, while it predicts an 11 per cent drop in completed sales. Deutsche Bank hopes the firm will update on its North American asset sale and progress on its new sites while reassuring the market about its cost savings.
LLOYDS BANKING GROUP
Standard & Poor’s has cut its rating from “buy” to “hold” with a 12-month target price of 75p following disappointing results on Friday. The broker has also reduced its short-term revenue and profit forecasts to factor in higher funding costs and loan loss provisions. While S&P expects profitability to improve over the next few years, it doesn’t expect returns on tangible equity to overtake the cost of equity until 2013.
JP Morgan Cazenove rates the IT services firm “neutral” with a raised target price of €45 (£38.42). The broker has lifted its full-year operating profit forecast by one per cent to €756m following surprisingly good results last week, and believes that management has left room for further upgrades during the year. JPM says the firm is geared to grow, with emphasis on new bookings and a recruitment drive for mostly junior staff.