Broker tips: Airlines, Rolls-Royce, Premier Foods, Spectris
Liberum has highlighted UK-listed IAG, Ryanair and Easyjet as its top picks across the European airline sector, saying it sees "opportunities for the brave" despite sentiment remaining fragile across the industry.
easyJet
533.00p
17:15 25/04/24
FTSE 100
8,078.86
17:14 25/04/24
International Consolidated Airlines Group SA (CDI)
176.15p
17:05 25/04/24
Premier Foods
155.80p
16:40 25/04/24
Rolls-Royce Holdings
405.70p
17:15 25/04/24
Ryanair Holdings (CDI)
€14.41
17:14 17/12/21
Spectris
3,254.00p
16:34 25/04/24
"Amidst concerns over Ebola, Eurozone recession and excess capacity, we believe there are good long-term opportunities for investors with high risk tolerances," the broker said.
Analysts at JPMorgan Cazenove, Investec and Liberum have all taken a more cautious view on Rolls-Royce after the engine maker lowered its full-year revenue guidance last week.
Liberum downgraded the stock from 'buy' to 'hold', slashing its target price from 1,225p to 900p. It said the shares are not likely to trade on much more than its medium-term average rating. Investec also lowered its recommendation from 'buy' to 'hold', while JPMorgan cut its stance from 'overweight' to 'neutral'.
Previewing Premier Foods' third quarter results on Thursday, broker Shore Capital reiterated its 'buy' recommendation in light of the "truly awful" performance of the shares since March's refinancing despite the "much good work" done by management this year.
ShoreCap was, however, approaching the trading update "with a degree of trepidation", given the weakness of previous trading and the UK's challenging grocery markets.
Analysts at Credit Suisse lowered their estimates for the instrumentation and controls manufacturer Spectris due to a raft of factors, including weakness in China and Germany.
The bank kept an 'outperform' rating on the stock, but cut its target price rom 2,370p to 2,075p.