Broker tips: Tesco, Barclays, Weir
Banks
3,832.04
08:05 19/04/24
Barclays
182.10p
08:05 19/04/24
Food & Drug Retailers
3,677.01
08:05 19/04/24
FTSE 100
7,832.89
08:05 19/04/24
FTSE 350
4,309.84
08:05 19/04/24
FTSE All-Share
4,266.37
08:05 19/04/24
Industrial Engineering
13,682.71
17:14 18/04/24
Tesco
279.80p
08:05 19/04/24
Weir Group
1,973.00p
08:05 19/04/24
Santander has downgraded its recommendation for Tesco from 'buy' to 'hold' in the aftermath of last week's profit warning and dividend cut.
"We continue to believe that there is real deep value in Tesco on a longer term basis, but for the next six months we see the shares as dead money at best."
The agreement to dispose part of Barclays' Spanish operations to Caixabank is a "modest but welcome positive", according to Deutsche Bank which retained a 'buy' rating for the UK bank on Tuesday.
Deutsche Bank had forecast ongoing losses from said businesses and pointed out that the deal will - whilst reducing tangible net asset value by about 1% - lead to higher capital ratios and 2-3% upgrades to earnings estimates for 2015.
Credit Suisse has downgraded its rating for engineering group IMI to 'neutral' whilst upgrading sector peer Weir to 'outperform', saying that the latter offers "a better relative risk return profile" in the near term.
"Our end market analysis suggests that 66% of Weir end markets could offer scope for positive surprise versus 0% for IMI," Credit Suisse said.
BC