Deutsche Bank rates the energy group as a “buy” with a target price of €23 (£19.64). The broker says the recent nine-month results were uneventful and in line, with full year targets confirmed for 2011. The target price is reduced slightly to reflect lower carbon dioxide prices, but the broker reiterates E.ON as a key pick to benefit from tightening reserve margins, power prices rising above the expected curve, and a re-linking of traded gas prices to oil-linked levels.
Citi has downgraded the aerospace and defence group from buy to “neutral” with an unchanged target price of 405p. The broker says that although Meggitt’s defence business look relatively insulated from budget cuts, this is already reflected in its share price. Despite the uncertain economic outlook, Citi says it is confident on civil aerospace sales growth driven by rising original equipment deliveries and aftermarket recovery.
Nomura rates Switzerland’s biggest phone company as a “buy” with a target price of SwFr420 (£290.95), after the group reported weak third quarter figures with revenues around three per cent below consensus and underlying Ebitda falling short by one per cent. The broker has cut its revenue forecast for 2012 by 1.5 per cent and its Ebitda forecast by 1.4 per cent, as well as lowering the price target from SwFr430.