Deutsche Bank has cut Standard Chartered PLC (LON:STAN) to ‘sell’ from ‘hold’, despite the Asia focussed bank’s better than expected first quarter results.
Analyst David Lock said Tuesday’s share price rally – STAN rose about 10% - was not justified by the bank’s revenue outlook or forecasts through to 2018.
“Standard Chartered shares have responded positively on the better impairment and capital position vs expectations, but the long-term valuation of this stock should, we think, be driven by 2018 returns, not near-term improvements in credit quality,” Lock said in a statement.
With a price target of 454p Deutsche Bank sees some 18% downside to the current Standard Chartered share price of 557p.
Canaccord Genuity downgraded engineering and natural resource services firm Weir Group Plc (LON:WEIR) to ‘sell’ from ‘hold’.
Defence engineer Cobham Plc (LON:COB) saw its price target lowered by not one but two blue-chip investment banks, with Barclays Capital and JP Morgan chopping target to 210p and 185p from respectively (the former has an ‘overweight’ rating while the latter is ‘neutral’). Previously they both had a 255p target.
Liberum Capital reassessed the UK house building sector, with its targets raised for Persimmon Plc (LON:PSN), Barratt Developments Plc (LON:BDEV) and Redrow plc (LON:RDW) – but downgrades came for Berkeley Group Holdings Plc (LON:BKG), Bovis Homes Group Plc (LON:BVS), Bellway Plc (LON:BWY) and Taylor Wimpey (LON:TW.).