LONDON (ShareCast) - Goldman Sachs has raised its rating on the packaging firm Rexam to ‘buy’ from ‘neutral’ saying the current share price is a good entry point offering exposure to the company’s relatively resilient drinks cans operations.

Rexam’s share price has fallen by about 30% over the past year.

Elsewhere in the packaging sector, Goldman cut its rating on Mondi to ‘neutral’ from ‘buy’. It predicts that reduced demand for corrugated boxes will fall 15% by early 2011.

The broker said that difficult economic conditions make it defensively positioned on the sector, preferring stocks with a larger market capitalisation, low gearing and high cash returns.

UBS has lowered its rating on Thomson Reuters to ‘sell’ from ‘neutral’, saying the company’s news services are likely to see reduced revenues over the fourth quarter.

Furthermore, expectations of tough economic conditions cause the broker to assume an 8.5% fall in the markets division’s revenues from 2009 to 2011.

It also cuts its target price on Thomson Reuters to 1,260p from 1,650p.

UBS has lifted its rating on Johnson Matthey to ‘neutral’ from ‘sell’, saying the speciality chemicals firm has underperformed competitors recently.

Noting that its share price has fallen by about 20% over the past three months, the broker said Johnson Matthey is now on multiples that are fair given its defensiveness and growth profile.

It sees Johnson's next big catalyst as the July 22 trading statement.

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