BEST OF THE BROKERS
PENNON
UBS has downgraded Pennon from “buy” to “neutral” but maintains its 565p target price. UBS said that it has seen infrastructure funds continue to raise cash and with credit conditions improving, it sees all UK water stocks as potential M&A targets. However, apart from this it sees little fundamental upside in Pennon currently.
ITV
Bank of America Merrill Lynch (BoAML) has changed its rating on ITV from “neutral” to “underperform”. BoAML said that it cut the rating as operating momentum is expected to stall. It said that risks of investment-led downgrades and a consumer slowdown will weigh on the shares. BoAML gives ITV a target price of 54.50p.
ING
Citigroup rates ING as “hold” and says that it sees fair value in the bank. Citi said ING is a much loved stock, with 25 buys and only 11 holds and two sells. ING’s loan loss should provide further uplift for earnings, according to Citi, but warns that its target of 13 to 15 per cent return on equity looks optimistic.