BEST of the BROKERS
Credit Suisse rates the chemicals company “neutral” and has raised its target price by 50p to £24 to reflect its increased earnings per share forecasts for 2013-15. The broker now expects to see 19 per cent year-on-year growth in profit before tax. However, the broker prefers Belgian rival Umicore as its long-term materials sector play as its growth rate looks stronger.
UBS rates the British Airways owner “buy” with a target price at 210p. The broker acknowledges that Bankia’s stake in the firm is partially responsible for a 23 per cent plunge in IAG’s share price in the last 30 days, and thinks the shares are oversold. However, it notes that economic, earnings and ongoing merger issues could also be a factor in the drop.
Liberum Capital rates the fashion group buy” with a 12-month target price of £17.25. The broker reckons the firm can double its earnings from £377m in five years, while keeping margins below 24 per cent, compared to 16 per cent currently. Liberum’s “blue sky view” sees the firm expand into new markets such as Latin America and India, plus expansion in Japan – prompting a debate on capital return or a dividend hike.