Broker tips: IAG, RSA, William Hill
Credit Suisse has hiked its target price for International Airlines Group from 678p to 750p after the British Airways and Iberia owner beat estimates with its annual results last week.
FTSE 100
8,044.81
16:49 23/04/24
FTSE 250
19,799.72
16:59 23/04/24
FTSE 350
4,424.29
16:59 23/04/24
FTSE All-Share
4,378.75
17:14 23/04/24
Insurance (non-life)
3,711.26
16:59 23/04/24
International Consolidated Airlines Group SA (CDI)
175.95p
16:40 23/04/24
RSA Insurance Group Limited
684.20p
16:54 28/05/21
Travel & Leisure
7,686.36
16:59 23/04/24
William Hill
271.80p
09:58 22/04/21
The bank reiterated its ‘outperform’ rating, saying “quality [is] shining through” at the airline conglomerate.
UBS said it remains cautious about RSA Insurance but has upgraded its rating on the stock from ‘sell’ to ’neutral’, saying that the market’s expectations have been reset following last week’s annual results.
“RSA faces challenges achieving its targeted 12-15% return on tangible equity (ROTE) but this is now the more consensual view with management having pushed out the target to 2017. Lower bond yields and increased competition have undermined announced efficiency gains. We remain relatively cautious given headwinds but the valuation is now more realistic.”
In spite of a decent set of results from William Hill last week, Canaccord Genuity has kept a ‘hold’ stance on the high street bookie, saying that the company is facing tough 2015.
The broker said William Hill will already have to deal with a “perfect storm of negative external factors” this year, and there could be more. “William Hill delivered an impressively resilient performance in 2014, but the deck is stacked against it in 2015,” said Canaccord’s Simon Davies.