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Investec has returned to a “buy” rating on the bank, two months after downgrading it to a “hold”, and sticks to its 85p target. The broker says it’s safe for investors to get back into the water now Lloyds has tackled its PPI provisioning and edges towards closing the sale of SWIP.
Liberum keeps its “sell” rating and 725p target, warning investors that it expects earnings to slow to 12.6 per cent in the next five years, compared to consensus forecasts of 20 per cent. The popularity of cheaper tablet computers and smartphones will contribute to the slowdown, Liberum reckons.
Cantor Fitzgerald thinks BHS’s plan to move into food sales could be bad news for grocers including Morrisons and Asda, which are less established as convenience stores, but believes Tesco will weather the competition. Nevertheless, the broker sticks to a “sell” rating and target of 282p.