JOHN WOOD GROUP
Investec rates the oil and gas group as “hold” with a target price of 689p, and has revisited its forecasts for the company following its recent results. The broker anticipates a stronger performance by the engineering division, in addition to lower costs and a lower tax rate, and so raises both 2012 and 2013 earnings forecasts. Despite a positive industry outlook, the broker struggles to see any near term price catalysts on the stock.
Nomura rates the mobile phone company as “reduce” and keeps its target price at €3.60, having had a first look at new smartphones released yesterday. The broker says new software makes the Symbian system more similar to Android in look and feel, and sees the new products as positive for the stock. Long-term though, it sees a continued decline in Nokia’s smartphone market share in coming quarters.
Citi initiates coverage of the international manufacturing group at “buy/medium risk” with a target price of 183p, and says its focus on high quality designed and engineered components has given it a good niche market position. The broker thinks recent share price weakness is overdone, despite valid concerns over military spending, which makes up 18 per cent of sales and automotive, which accounts for around 20 per cent.