Broker tips: BA, BAE, Carphone Warehouse
Shares in Britsh Airways took a knock this morning when the airliner was downgraded to 'underweight' from 'equal-weight' by Morgan Stanley.
The broker also slashed BA's price target to 120p from 245p.
Among the reason's Morgan gave for the downgrade were costs incurred from the move to Heathrow's fifth terminal and an aggressive pilots' union.
Merrill Lynch has lifted its price target on BAE Systems, saying that the Serious Fraud Office was unlikely to reopen its case into alleged bribery in Saudi Arabia by the weapons and aerospace group.
Merrill said the market had overreacted to a recent court ruling that the government acted unlawfully in blocking an investigation into secret payments made by BAE to Saudi Arabia.
(Article continues below)Advertisement
The broker lifted its price target on BAE to 545p from 515p and maintained its 'buy' recommendation.
JP Morgan has retained its 'overweight' rating on Carphone Warehouse, saying it expects 'robust' key performance indicators from the mobile phone retailer Tuesday.
The broker also raised its EPS estimates for Carphone Warehouse to 21.52p from 20.91p for the current year and to 26.65p from 25.62p for next year.
Speaking about Tuesday's KPIs, JPM said: "Guidance is unlikely to be ambitious, although we don't see downside risk to consensus."
It trimmed its price target on the company to 420p from 434p.
