Rolls-Royce Holdings and HSS Hire: Best of the Brokers for 26 November 2015

To appear in Best of the Brokers, email your research to notes@cityam.com

 

Short-term investors might have been left scratching their heads after Rolls-Royce iss­ued its most recent profit warning. However, according to Liberum, longer-term inv­est­ors can take comfort in a five- to 10-year plan presented by boss Warren East, add­ing that the engineering giant “undoubtedly has signif­icant potential”. Liber­num has slashed its target price from 705p to 560p and maintained its “hold” recommendation.

 

Thanks to recent cost saving initiatives, HSS Hire can expect a healthy boost to profits and a lower level of capital expenditure in 2016, says Numis. The equipment hire company revealed 8.3 per cent revenue growth in its third-quarter results and a 10.7 per cent increase in revenue for the nine months to date. Numis maintained its “add” recommendation but has reduced its target price to 55p from 140p.