Broker tips: RBS, Tesco, Capita
Banks
3,895.51
17:09 19/04/24
Capita
13.16p
16:45 19/04/24
Food & Drug Retailers
3,705.02
17:10 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
NATWEST GROUP
276.70p
16:34 19/04/24
Support Services
10,465.25
17:10 19/04/24
Tesco
281.40p
16:59 19/04/24
Investors should 'sell' shares of Royal Bank of Scotland following the bank's second-quarter results on Friday, according to Investec.
The broker highlighted that RBS pre-released a better-than-expected set of second-quarter numbers last week, which sparked "wild euphoria and an 11% one-day spike". "Despite already giving back part of those gains, with the stock still trading on one times 2014/2015 estimated tangible net asset value we believe that investors should again feel able to short the stock with confidence," said analyst Ian Gordon.
A dividend cut is looking "increasingly likely" at Tesco, according to broker Brewin Dolphin which downgraded its recommendation for the supermarket stock on Friday.
"We [...] believe that the probability of a dividend cut has increased significantly (it was 14.76p in 2013/14): a cut to 10p would save the company £400m and give additional firepower for the much needed store investments."
Credit Suisse has downgraded its rating for outsourcing group Capita from 'outperform' to 'neutral', saying that the stock is "up with events" after its recent interim results.
The bank said that Capita's 20% outperformance over the FTSE 100 since the start of the year means that the stock's valuation is now at the top-end of the support services sector.
BC