Broker tips: Morrisons, Tesco, IAG, Ryanair, Melrose
Food & Drug Retailers
3,682.87
17:14 18/04/24
FTSE 100
7,877.05
17:14 18/04/24
FTSE 250
19,450.67
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Industrial Engineering
13,682.71
17:14 18/04/24
International Consolidated Airlines Group SA (CDI)
169.80p
16:40 18/04/24
Melrose Industries
630.60p
16:49 18/04/24
Morrison (Wm) Supermarkets
286.40p
16:55 26/10/21
Ryanair Holdings (CDI)
€14.41
17:14 17/12/21
Tesco
282.70p
17:05 18/04/24
Travel & Leisure
7,512.73
17:14 18/04/24
Shares of rival supermarket chains Wm Morrison and Tesco were heading in opposite directions on Thursday after Deutsche Bank upgraded its rating for the former and downgraded the latter.
The bank lifted Morrisons from 'sell' to 'hold' and kept its 190p target price after an 8% share-price underperformance against the wider market over the last three months. As for Tesco, the stock was lowered from 'buy' to 'hold' due to the "low visibility" from recent management changes.
"Sentiment [is] trumping fundamentals" in the UK airline sector, according to Jefferies, which recommended investors to see dips as an opportunity to revisit its two preferred names of IAG and Ryanair.
Stocks are being swayed by the Ebola outbreak, Icelandic volcano and ongoing geopolitical tensions, the broker said. "A lull in reporting means external factors, not fundamentals, will continue to be the bigger near-term share price driver," said analysts Mark Irvine-Fortescue and Ian Rennardson.
Melrose delivered "rock solid" interims, according to Canaccord Genuity which maintained a 'buy' rating and 400p target price for the industrial investment group.
The broker said that Elster, the gas, electricity and water metering division, continued to outperform expectations and "put in a very strong performance" with margins up 2.9 percentage points over the year at 18.9%.
BC