Broker tips: RBS, Tate & Lyle, Dairy Crest
Charles Stanley has raised its recommendation for Royal Bank of Scotland from ‘reduce’ to ‘hold’, saying the stock is now “fairly valued” despite remaining misconduct uncertainties.
Banks
3,996.57
17:09 24/04/24
Dairy Crest Group
620.50p
16:34 12/04/19
Food Producers & Processors
8,121.07
17:09 24/04/24
FTSE 100
8,040.38
16:34 24/04/24
FTSE 250
19,719.37
17:09 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
NATWEST GROUP
285.90p
17:15 24/04/24
Tate & Lyle
633.00p
16:45 24/04/24
The broker said RBS has been the standout laggard in the UK banking sector so far this year, falling by 15%. “We believe further downside from current levels could be limited,” it said.
Credit Suisse upgraded Tate & Lyle to ‘neutral’ from ‘underperform’ following the recent underperformance that has seen the shares fall below its price target.
CS noted that the shares have de-rated to 15 times this year’s estimated earnings and the dividend offers further support.
Credit Suisse also upgraded Dairy Crest to ‘outperform’ from ‘neutral’ and raised the price target to 580p from 485p, as it revised forecasts to assume a sale of the dairy division.
CS said the conciliatory tone struck by the Competition Markets Authority, together with Muller's desire to find an agreeable solution, augurs well for a satisfactory conclusion to Dairy Crest’s proposed Dairy sale. “Better then to model on the assumption the deal goes through,” said the bank.