Goldman Sachs rates the engine maker a “buy” with an 850p target price on its conviction buy list, as it believes it is well placed compared to its peers and has strong long-term growth prospects. The stock has more defensive characteristics than many cyclicals and should outperform, GS believes. The soon-to-close Tognum acquisition should be largely cash funded and six per cent earnings accretive and GS believes consensus earnings forecasts are too low.

Evolution Securities rates Centrica a “buy” with a 381p target price as the company’s performance in the past year has been lacklustre while regulatory disputes and the North Sea tax hike on producers are concerns. Evo believes Centrica will gain from a near tripling in British Energy’s contribution in the next few years, while extra energy reserves will add substantial value. It also sees a 20 per cent earnings upside if UK gas prices move up in line with oil.

Unicredit rates the household goods maker “hold” with a 3,500p target price as it anticipates it spinning off or selling its pharma division next year. The broker values the pharma arm at 330p per share but warns its revenue stream faces threats. The rest of the business trades at a 14 per cent premium to its peers, which Unicredit views as unwarranted. It also fears a large advertising spend may be needed to raise sales growth.