Citigroup rates the insurance group “buy” with an increased target price of 367p. The broker believes that M&A and mission creep fears have been over-discounted in the market, with the risks instead lying with changing regulation and agency costs. Citi likes Resolution’s low relative leverage and excess capital, and hangs its investment case around the firm’s potential value generation in restructuring UK life insurance companies.
Goldman Sachs rates the pizza chain “buy” with a target price of 586p. The broker has lifted its forecasts after a recent trading statement, and now expects 60 new store openings a year compared with 55 a year previously. Goldman’s like-for-like sales growth forecast for 2011 is unchanged at 5.5 per cent. Risks to the firm include more competition and a further decline in Irish sales, the broker adds.
Collins Stewart rates the property firm “hold” with a target price of 470p. The broker expects the property market to be flat this year, with very little prospect of rental growth outside central London. The broker is impressed with Hammerson’s strategy but thinks it will be some time before the firm’s development programme contributes to the bottom line, and has reduced its pre-tax profit forecast by 1.5 per cent for 2011.