JP Morgan rates the global steel giant as “overweight” and reduces its price target from €35 to €26. The broker also reduces its 2011 earnings outlook, with its forecasts for Ebitda down from $11.4bn to $10.6bn, and earnings per share at $2.61 instead of $3.12. The change is mainly due to a fall in flat carbon Europe shipments and the weak US dollar. JP Morgan expects long steel and mining to support 2012 earnings.

UBS rates the building group as “neutral” and reduces its target price to 350p from 390p. The broker’s forecasts are largely unchanged after the first-half performance, with profit and earnings per share in line with expectations. UBS anticipates low growth of two per cent in support services, excluding the consolidation benefit of Eaga/Carillion Energy Services, and increases its pension deficit forecast as market volatility impacts its value by 20p.

Citi initiates coverage of the German sporting goods group with a “buy/medium risk” rating and a target price of €56, seeing it as a premium growth stock that is trading on a modest valuation, and underpinned by a strong balance sheet. The broker expects the contribution of emerging markets to group revenue to increase from one third to 50 per cent over five years, giving Adidas rising exposure to the highest growth sportswear markets.