FinnCap rates the Cambridge-based chipmaker as a “hold” with a target price of 575p, saying the company is at the heart of the mobile revolution, with its low power products ubiquitous in smartphone and tablet processors. The broker says the shares are “worth picking up on a bad day”, with plenty of upside from more devices using ARM chips, as well as royalties from additional intellectual property due to it owning the platform.
JP Morgan Cazenove rates the telecoms group as “overweight” and reduces its target price from 240p to 210p to reflect its updated pension deficit assumptions. The broker expects the gross actuarial deficit to be in the range of £5-8bn, having deteriorated recently due to falling gilt yields impacting the liability discount rate. Despite this, it sees scope for near-term positive news on pensions, and expects BT to look to pre-pay contributions before the end of March.
MITCHELLS AND BUTLERS
Goldman Sachs lowers its six-month price target on the pub group from 303p to 290p with a rating of “neutral” as it introduces 2014 estimates to its forecasts. The broker sees limited growth in profit for the year ahead despite elevated capital expenditure, and prefers Greene King within the pub sector. The key negative risks to the broker’s view is a significant increase in UK unemployment, which would further squeeze consumer spending.