BEST OF THE BROKERS
RPC GROUP
JP Morgan rates the plastic packaging group as “overweight” and raises its target price to 410p from 394p, after the company reported more than 100 per cent growth in interim adjusted operating profit to £45.4m – seven per cent above the broker’s estimate. JP Morgan increases its operating profit estimates in 2012 and 2013 by five and three per cent respectively, and sees the outlook for further earnings growth as positive.
REMY COINTREAU
Nomura rates the French spirits group as “neutral” and increases its target price from €63 to €66, after the company reported first half earnings ahead of Nomura and consensus estimates. The broker’s full-year expectations for 2012 remain unchanged, but 2013 is increased by six per cent to reflect stronger-than-expected momentum in earnings before interest and tax, plus the share buyback.
FIAT
Morgan Stanley downgrades the Italian car group to “underweight” with a target price of €3.50, and says the company is in need of a new plan to raise its competitiveness. The broker says chief executive Sergio Marchionne’s ability to lead Fiat Auto through a second potential recession may be tested, and that though the company is likely to survive, it will do so at the cost of more delays to essential investment.