The engineering consultancy’s trading update yesterday said that trading had improved in key Asia Pacific and Middle East areas, but analysts at Panmure Gordon warned against buying the stock, claiming that although they are fans of the business, growth is already priced into Hyder’s Shares after “a strong show of late”. Analyst Mike Allen gave a “Hold” recommendation and a 488p target.
Canaccord Genuity initiated coverage on the healthcare outsourcing company with a “Sell” recommendation and an 857p target well below the current share price, as it said that a period of investment would reduce opportunities for a shareholder payout. “Any disappointment in delivery is likely to result in a de-rating. Ongoing margin pressure in Europe could also result in downgrades,” Canaccord said.
LLOYDS BANKING GROUP
Analysts at Espirito Santo have downgraded the bank, along with RBS, to a “Sell” rating, claiming that “the operating environment remains difficult in the face of a weak economic outlook”. Espirito Santo has also raised flags over the regulatory environment, saying standardised credit risks would require raising new money from equity, and thus dilute the shares. The target price is 48p on Lloyds.