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S&P Capital has maintained its “sell” rating on Coca-Cola HBC, despite healthy volume growth of 5.4 per cent reported in its third-quarter results. Negative currency impact led to a revenue decline in the third quarter year-on-year. Weakness in Russia has been noted as a concern, with depreciation of the rouble dragging on revenue in the last quarter.
Numis has returned to a “buy” recommendation for online betting firm Betfair and increased its price target to 4,000p from 3,255p currently, due to opportunities from the merger with Paddy Power is expected to bring. Paddy Power Betfair, dubbed “Betty”, Numis forecasts will have total revenues of £1.2bn and online revenues of over £1bn, second only to bet365 in online.
Haitong Research has reiterated a “hold” rating on Rolls-Royce ahead of the engineering firm’s trading update on 12 November. It has though reduced its fair value to 685p from 720p, due to macro and sector indicators from China, Brazil and Germany. Haitong warns that in China air cargo growth has slowed to low-single digits since late summer. Haitong has reduced its earnings per share forecasts for Rolls-Royce by six per cent for both 2015 and 2016.