LONDON (ShareCast) - Morgan Stanley has cut its price target on London Stock Exchange to 945p from 1,060p and kept its ‘underweight’ rating on the stock, citing cyclical factors.
The broker also said that consensus opinion underestimates pressure on pricing as LSE contends with competition.
ABN Amro has started coverage on the bus and train operator Go-Ahead Group with a ‘buy’ recommendation and a 1,920p target price.
The broker said that pressure on the group’s share price from rising fuel costs, exposure to London commuters and the expiry of its Southern franchise was limited.
Morgan Stanley has started coverage of Oilexco with an overweight rating and a 1,140p price target saying the North Sea oil and gas explorer is likely to benefit from good news in coming months.
The broker cited short-term drilling in the UK and the likely valuation of the recently identified Huntingdon column in the North Sea in the second half of 2008.
Morgan also began coverage on the Middle East and Africa-focused explorer Addax with an ‘equal-weight’ rating and a 3,540p price target.
It maintains its positive view on oil explorers, saying the sector’s recent strong performance has been driven by exploration activities, leaving more room for gains to be made from the high oil price.
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