BEST OF THE BROKERS
CABLE & WIRELESS
Cable & Wireless maintained guidance at both division and group levels in its first-quarter interim management statement, and Royal Bank of Scotland still considers the equity story one of the most compelling of European telecoms companies. The broker has a “buy” recommendation on the stock, with a target price of 200p.
AUTONOMY
Investec believes that this is the time to buy Autonomy as sentiment has been low, but confidence in the business model is not collapsing. Stepping back from confusion over some metrics at the firm’s second-quarter statement, the broker believes the model is intact and the outlook unchanged, and upgraded the stock to “buy”.
BRITISH AIRWAYS
Goldman Sachs upgraded BA to “buy” from “sell”, saying that the risk/reward of its earnings potential and its balance sheet risk have improved. The broker has a price target of 165p, but says the risks to that include a further weakening in demand, a spike in the oil price, labour unrest and a greater than forecast pension deficit.