BEST of the BROKERS
INTERCONTINENTAL HOTELS GROUP
Goldman Sachs retains its “buy” rating on the hotel chain and has raised its target price from £17.25 to £17.70 following first quarter results. The broker has also lifted its earnings forecasts and is expecting higher revenues per room, particularly in China and Europe. Goldman also notes that IHG trades at a discount to its peers in the US, and that a return of cash to shareholders could be on the cards following asset disposals.
F&C ASSET MANAGEMENT
JP Morgan Cazenove rates the asset manager “neutral” but has trimmed its target price from 98p to 86p. The broker expects the shares to keep trading at a discount to the sector while the market is uncertain about F&C’s insurance and institutional contracts. Assets under management are rising as expected, while the £1.7bn fund outflows reported this week were already priced in.
HOCHSCHILD MINING
Citigroup has downgraded the miner to “sell” and cut its target price from 494p to 402p. Having downgraded fellow silver miner Fresnillo earlier this week, Citi reckons the premium between the precious metal and other commodities is at an unsustainable level.