Proactive Investors - Run By Investors For Investors

Brokers: ‘Hold’ is the height of positivity for City analysts

Brokers: ‘Hold’ is the height of positivity for City analysts
A move to ‘hold’ from ‘sell’ is the most positive upgrade the City could muster.

It possibly says something about the mood in the City that among all of Thursday’s upgrades, moves to ‘hold’ from ‘sell’ represent the height of positivity.

Cantor Fitzgerald’s upgrade of BA owner Intercontinental Airlines Group (LON:IAG) - to ‘hold’ - reflects the sort of lurking concern about broader economic forces that are making investors particularly tentative.

“IAG is strategically well positioned and is attractively valued. That said, its earnings are always vulnerable to a downturn in the global economy and business services sector,” said Cantor analyst Rob Byde.

Whilst specific to IAG, the comment could feasibly be transposed a large number of London listed stocks amid the recent New Year sell-off.

Home furnishing retailer Dunelm (LON:DNLM) has its price target lifted to 885p from 870p by Deutsche Bank, which repeated a ‘hold’ recommendation.

JP Morgan said it still rates defence tech firm QinetiQ (LON:QQ.) as ‘neutral’, though its target rises to 270p from 265p.

Tullow Oil (LON:TLW) sees Jefferies increase its target price to 166p from 140p, though it too goes no further than a ‘hold’.

Meanwhile, downgrades were apparently easier to come by.

Microchip maker ARM Holdings (LON:ARM) was cut to ‘underperform’ from ‘market perform’ by Bernstein.

Smith & Nephew (LON:SN.) dropped saw UBS drop its ‘buy’ in favour of a new ‘neutral’ rating.

Deutsche sliced 17.5% off its target price for polymer firm Victrex (LON:VCT), down to 1,650p from 2,000p - and its ‘hold’ recommendation was repeated.

Investec downgraded Oxford Instruments (LON:OXIG) to ‘sell’ from ‘hold’.

Jamie_55a91591db06b.jpg


Register here to be notified of future IAG Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use