Broker Roundup: Charter price targets slashed; Wolseley upped

Brokers slashed their price targets for Charter International (CHTR.L) on Tuesday, after the tool and equipment maker warned over weakening demand in Europe, while analysts saw more upside in Wolseley (WOS.L).

Credit Suisse reduced its price target for Charter to 645p from 815p, giving the stock a ‘neutral’ rating.

‘Price performance within the UK Capital Goods sector is driven predominantly by positive earnings momentum and EBITA margin expansion,’ said analysts at the Swiss bank. ‘At this juncture we believe other companies within the sector are better placed to deliver on both relative to Charter.’

• Elsewhere, JP Morgan cut Charter to ‘neutral’ from ‘overweight,’ reducing its price target for the stock to 800p from 950p.
• UBS cut its price target for Charter to 550p from 850p, with a ‘neutral’ rating.
• Barclays cut Charter to ‘equal weight’ from ‘overweight,’ reducing its price target to 683p from 942p.
• Panmure Gordon reduced its target price for Charter to 655p from 860p, but also upgraded the stock to ‘buy’ from ‘hold.’

Upgrades, raised price targets

• ING raised plumbing supply group Wolseley to ‘buy’ from ‘hold,’ hiking its price target for the stock to £22.50 from £14.50.
• Meanwhile, ING hiked its price target for Travis Perkins (TPK.L) to £11.60 from £11.00, with a ‘hold’ rating.
• Investec raised its price target for British American Tobacco (BATS.L) to £30.00 from £26.60, with a ‘buy’ rating.
• Goldman Sachs hiked its price target for real estate investment trust Great Portland Estates (GPOR.L) to 520p from 466p, with a ‘buy’ rating.
• Canaccord Genuity raised S&U (SUS.L), which specialises in loans to low-income households, to buy from hold.
• Altium Securities raised its price target for Domino Printing Sciences (DOPR.L) to 729p from 680p, giving the stock a ‘buy’ rating.

Downgrades and lowered price targets

• Goldman Sachs cut its price target for Big Yellow Group (BYG.L) to 380p from 437p, with a ‘buy’ rating.
• Goldman Sachs reduced property group Derwent London (DLN.L) to ‘neutral’ from ‘buy.’
• Evolution Securities cut its price target for Whitbread (WTB.L) to £17.50 from £18.10, with a ‘buy’ rating.
• Arbuthnot Securities cut anti-microbial technology business Byotrol (BYOT.L) to ‘buy’ from ‘strong buy,’ trimming its target price to 19p from 25p.
• Oriel Securities cut Supergroup (SGP.L) to ‘sell’ from ‘add.’
• UBS raised Cable & Wireless Communications (CWC.L) to ‘neutral’ from ‘sell.’

Goldman utilities report

• Goldman Sachs cut its price target for Northumbrian Water (NWG.L) to 415p from 427p, with a ‘neutral’ rating.
• Goldman Sachs raised its price target for Pennon Group (PNN.L) to 705p from 692p, giving the stock a ‘neutral’ rating.
• Goldman Sachs reduced its price target for Severn Trent (SVT.L) to £15.84 from £16.47, with a ‘neutral’ rating.
• Goldman Sachs cut its price target for United Utilities (UU.L) to 659p from 688p, with a ‘neutral’ rating.