Broker tips: British Airways, Reckitt Benckiser, easyJet
British Airways was among the FTSE 100's heaviest fallers this morning after Goldman Sachs downgraded the airline to 'sell' from 'buy' and slashed its price target to 200p from 330p.
Goldman cited the high oil price, demand and competition as reasons for the downgrade.
The broker, which cut its 2009 and 2010 earnings forecasts for BA by 43% and 46% respectively, now assumes an average oil price of $100 a barrel.
JP Morgan has lifted its price target on Reckitt Benckiser to 3,400p from 3,150p, citing the potential of emerging markets to fuel the household products group's growth.
It said its 'forensic analysis' showed that 'improvement in emerging markets margin should sustain a strong delivery in the core household segment'.
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Despite input costs inflation remaining a strong concern, JPM still expects increased margins in 2008, it said. It maintains its 'overweight' rating on the company.
Credit Suisse has started coverage on easyJet with an 'outperform' rating and a 445p price target, saying the budget airline is likely to benefit from an industry downturn.
With more expensive competitors likely to be forced to reduce capacity, easyJet is well-placed to gain market share, the broker said. The price target is based on a 2008 price-to-earnings ratio of 14 times, Credit Suisse said.
Credit Suisse also started coverage on easyJet's Irish rival Ryanair, giving it a 'neutral' rating.
