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Morgan Stanley dials Direct Line target higher

Heavyweight broker Morgan Stanley is bullish on insurance firm Direct Line today

Heavyweight broker Morgan Stanley is bullish on insurance firm Direct Line (LON:DLG) today and has dialled up the target price to 443p from 409p and repeated an 'equal weight' stance.

Yesterday, shares rose as the group unveiled a 10 pence a share special dividend and said it may consider a similar shareholder return at the end of the year.

The UK’s largest motor insurer plans to make the distribution, a return of £205mln, after more than fulfilling its regulatory capital requirements.

However, less in favour is German bank Berenberg, which has moved to 'hold' on the shares from 'buy' and repeated a 406p price target.

Also on the upgrade front, mining titan Anglo American (LON:AAL) is lifted to 'outperform' from 'market perform'. Deutsche digs higher on copper behemoth Rio Tinto (LON:RIO), on which it repeats a 'buy' and lifts the target to 3230p from 3160p.

Travel group TUI AG (LON:TUI) gets a clip round the ear by Credit Suisse, which lowers the target to 1245p from 1300p and repeats an 'outperform' stance.

In smaller caps, Mytrah Energy PLC (LON:MYT) shares rose today after one of America’s largest companies GW agreed to invest US$31mln in wind projects in India.

The stock, up 21% in the last six months, added a further 2.85p to 54.35p in the wake of this morning announcement, valuing the business at £92mln.

The broker Cantor Fitzgerald reckons the stock is worth 123p.

Reiterating his buy advice, analyst Adam Forsyth said: “Mytrah continues to make good progress in bringing wind assets into operation and today’s announcement shows that longer term development remains on track."

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