ING rates the consumer goods group “buy” with a target price of £40.55. The broker sees Reckitt as one of its top picks in the fast moving consumer goods sector, with expected growth in developing markets set to more than make up for stagnant performance in Europe. ING also notes that the firm has one of the most attractive free cash flow yields in the sector, with 7.4 per cent forecast in 2012.
Goldman Sachs has initiated coverage on the video search engine with a “buy” rating and a 250p target price. The firm’s strong technology and intellectual property gives it strategic appeal, the broker says, plus it gives exposure to the structural growth in the online video advertising market. Despite the execution risk in the firm’s lack of scale, Goldman expects Blinkx to generate compound annual earnings growth of 60 per cent plus over three years.
Morgan Stanley rates the media group as “overweight” with a target price of £25. Following a meeting with management, the broker thinks the firm continues to transmit a positive message on its strategy. Morgan Stanley thinks the firm has exposure to rising prices in the UK fixed line market, which coupled with an ongoing buyback means investors are in line for further share price growth.