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PEARSON
Goldman Sachs upgraded Pearson to “Neutral” from “Sell” after seeing some recovery from the publisher’s recent underperformance, and upped the price target by six per cent to 766p. Pearson said that the firm has seen solid first half results and that valuation had dropped more in line with peers. This has resulted in more positive forecasts and price targets.
GAMES WORKSHOP
KBC Peel Hunt has said Games Workshop’s strong share price performance, up 60 per cent in the last two months, has exceeded expectations and have led it to upgrade its latest recommendations from “Buy” to “Hold”in forecasts. Momentum in the business is looking good, it said, but shares still look expensive compared to the May 2010 estimates.
LADBROKES
Collins Stewart cut its rating on betting and gaming business Ladbrokes to “Hold”. The company has recently been trading on a premium level to competitors William Hill, it said in a research note. However, the anticipated outperformance of the later combined with its lower levels of debt has led the broker to view Ladbrokes performance as unsustainable.