BEST OF THE BROKERS
MEGGITT
Deutsche Bank upgraded Meggitt to a “buy” rating, saying that it believes that the aerospace aftermarket should start to show some progress in the second half. The broker said that concerns over the engineer’s balance sheet are over done and believes that the firm’s strong management record will help sustain earnings.
DSM
As part of its quarterly review, Nomura has downgraded DSM stock to “reduce” from “neutral” and cut the target price to ¤22. The broker expects a disappointing outlook in the next few quarters primarily owing to poor volumes and negative supply-demand balance in the firm’s Material Science divisions. It said that Life Sciences could also disappoint due to low penicillin prices.
HENDERSON GROUP
Altium Securities said that Henderson shares are oversold and has returned to a “buy” recommendation. Following a conference call with the company, and an update on the integration of New Star, the broker believes there is a 15 per cent upside to its target price of 106p. However, it warns that shares may not gain ground until after the firm’s interims on 27 August.