BEST OF THE BROKERS
EASYJET
easyJet revealed strong revenue trends for the third quarter, according to Royal Bank of Scotland (RBS), which said it was, however, lower than expected. Profit guidance was unchanged as the volcano impact was confirmed at the top of the range. RBS reiterates its “hold” rating, noting operational instability is leading to incremental costs.
CENTRICA
JP Morgan Cazenove gives the utility group an “overweight” rating and raises its target price to 390p from 385p, noting that its interim results were 10 per cent ahead of consensus forecasts. Calculates potential 28 per cent upside from the current share price. Believes Centrica’s valuation is “undemanding” at 12.1 times price to earnings.
FERROVIAL
Citigroup said that Ferrovial-owned BAA reported encouraging first half numbers, despite the closure of Heathrow and Stansted for five days in April due to the volcanic ash cloud and the 34 days of British Airways cabin crew strikes. Citi gives Ferrovial a “buy” recommendation on the back of BAA’s numbers.