BEST OF THE BROKERS
Royal Bank of Scotland (RBS) believes that Informa’s first-half results demonstrated a turning of the cycle –both operationally and from a capital allocation perspective because the firm upped its dividend by 25 per cent. RBS reiterates a “buy” recommendation for Informa and raises its target price to £4.70.
JP Morgan Cazenove retains a “neutral” recommendation on Whitbread and said that June’s hotel market data demonstrates the ongoing disparity between strength of demand in London. Premier Inn has already reported strong trading, but JP Morgan prefers the exposure of Intercontinental Hotels Group at this stage of the cycle.
DAILY MAIL & GENERAL TRUST
Citigroup sees Daily Mail & General Trust’s results as mildly positive and gives them a “buy” rating. Citi said that while it may not drive significant changes to consensus earnings, it believes it will give confidence for full-year 2010 forecasts. Citi forecasts 19 per cent earnings per share growth in 2010 and 2011.