Swiss broker UBS has downgraded UK taxpayer-owned bank Royal Bank of Scotland (LON:RBS) after the trading update last week.
The core bank is doing well says the broker but the risks on the timing of capital returns are now too significant to maintain a ‘Buy’ rating.
UBS’s dividend forecast gives a 2018-2020 yield of well over 10%, but the uncertainty over its estimates have prompted a reduction in the price target to 250p from 310p and move to a ‘neutral’ rating.
Macquarie, meanwhile, has downgraded oiler Tullow Oil (LON:TLW) to neutral even though analyst Kate Sloan is becoming increasingly upbeat on the East Africa story.
Shares are worth 292p says the broker, compared to her previous forecast of 264p, but the rating is downgraded to ‘neutral’.
Deutsche Bank says it was too optimistic on Tesco’s (LON:TSCO) recovery.
Earnings forecast have now been cut by a further 12% this year and the price target is reduced to 195p from 210p. Hold.
Astra Zeneca (LON:AZN) remains a ‘buy’ for the German broker.
Astra has announced a US $1.1bn cost savings programme and this should help investors become more comfortable over the pharma’s ability to bridge the upcoming Crestor patent cliff.
HSBC has lowered it price target for high street and online clothing group retailer Next Plc (LON:NXT).
Structural headwinds remain says the broker, which now has a target of 5,500p (from 6,260p). The ‘hold’ rating remains.
Macquarie has upgraded Direct Line Insurance (LON:DL.) to ‘neutral’ after recent underperformance compared to its rivals.
Among the smaller companies, broker VSA has retained a ‘speculative buy’ rating on gold explorer Armadale Capital (LON:ACP).
Recent soil samples at Mpokoto (in the DRC) are a good indication that the mineralised corridors do in fact continue to the north-west and south-east of the current compliant resource.
A speculative buy with a 12.3p price target, says the broker.
Panmure Gordon has revised its price target for Eland Oil & Gas PLC (LON:ELA) following the US$18.5mln fund raise last week.
The principal objective of the funding is to advance the Gbetiokun Early Production System in Nigeria.
The new target price is 95p per share (from 105p) but the verdict remains ‘buy’.
Cantor Fitzgerald is keen still on plastics group Symphony environmental (LON:SYM).
Latest results reflected the continued investment in development and marketing in the group’s two major additives products.
Following a strategic review, the company has decided that it can now scale back this investment and focus on growing d2w sales and fully commercialising the d2p range.
Sales of d2w additives are growing and there is a strong possibility of imminent contract awards in the d2p range.
‘Buy’ with a target price of 6.8p.