Morgan Stanley rates the tech firm “equalweight” and has raised its price target from 690p to 770p after reviewing Inmarsat’s spectrum opportunities in the United States. While the market has been downbeat about the firm’s US partner Light Squared, which is in Chapter 11 bankruptcy protection, the broker thinks the spectrum assets could eventually be worth up to 240p per share.
Berenberg Bank has cut the bank from “hold” to “sell” and kept its price target at 1,450p. The broker thinks the current share price does not reflect the risks of rising provisions, revenue headwinds liked to derivatives regulation and potential capital dilution. It adds that StanChart is too big to generate double-digit growth even with its exposure to new markets.
UBS has downgraded the outsourcing firm from “buy” to “neutral” and raised its 12-month target from 900p to 925p. The broker believes that improved fundamentals are now priced into the shares, and that public spending concerns will mount in the run-up to the 2015 general election. However, UBS has raised its earnings per share forecasts by one to two per cent on the back of better market conditions.
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