Morgan Stanley rates the provider of sterilisation services to hospitals as “overweight” with a target price of 1,085p, based on stable, defensive growth, opportunities from new regions and acquisitions, a cheap valuation, and expanding margins. Following eight per cent organic growth in its first half results last week, the broker says the risk of cuts hitting hospital budgets as a positive tailwind to growth as clients look for lower, outsourced costs.
RBS rates the Edinburgh-based oil and gas exploration and production company as a “hold” with a target price of 315p, saying that once the long-awaited disposal of the company’s stake in Cairn India should deliver a windfall for its shareholders. The broker is hopeful of a resolution before the end of the year, depending on government approval. It also says any deals that deliver firm drilling plans in 2012 could result in a positive share price reaction.
Nomura rates the retailer as a “buy” with a target price of 320p, following a meeting with the group’s general manager in Shanghai, at which the broker was reassured that the company is on track to meet its $1.6bn (£1bn), 16 per cent direct sourcing target for the current year. The broker also sees opportunity in harmonising the company’s 10 brands to create better brand recognition, which is currently fairly limited.