Downgrades
On Monday, Rio Tinto was downgraded to Neutral from Overweight by JPMorgan analyst Lyndon Fagan. The analyst set a price target of 4,950p, down from 6,000p. Fagan suggests using the recent ore price rise and sentiment to decrease long exposure to stocks in the sector. He added that weaker fixed-asset investment in China is a possible cyclical and structural headwind next year.
Morgan Stanley's Charles Webb downgraded Synthomer to Underweight from Overweight, setting a price target of 400p, down from 568p. The analyst revealed several reasons for the double downgrade, including a deterioration in the supply outlook, volume risks, rising leverage, faster than expected normalisation in earnings, and a management transition.
Analyst Gavin Jago at Barclays double downgraded Persimmon to Underweight from Overweight, setting a 2,500p price target. The analyst explained there is a risk of a housing affordability squeeze in the United Kingdom due to factors such as rising interest rates, cost of living, and house prices. In addition, Jago explained there are “particular demand risks for first-time buyers, where rising interest rates have a more pronounced impact on mortgage costs.”
Price Target Changes
Barclays analyst Gavin Jago reduced the price target on Vistry Group to 1,470p from 1,600p, maintaining an Overweight rating.
Barclays analyst Gavin Jago reduced the price target on Taylor Wimpey to 195p from 205p, maintaining an Overweight rating.
Barclays analyst Gavin Jago reduced the price target on Bellway to 3,600p from 3,800p, maintaining an Equal Weight rating.
Barclays analyst Gavin Jago reduced the price target on Barratt Developments to 760p from 850p, maintaining an Equal Weight rating.
UBS analyst Rory McKenzie reduced the price target on Homeserve to 1,400p from 1,500p, maintaining a Buy rating.
JPMorgan analyst Raul Sinha reduced the price target on Standard Chartered to 570p from 620p, maintaining an Overweight rating.
JPMorgan analyst Daniel Kerven reduced the price target on Ocado Group to 1,800p from 1,900p, maintaining a Neutral rating.
JPMorgan analyst Raul Sinha reduced the price target on Lloyds Banking to 63p from 65p, maintaining an Overweight rating.
JPMorgan analyst Dominic O'Kane reduced the price target on Ferrexpo to 280p from 370p, maintaining a Neutral rating.
JPMorgan analyst Dominic O'Kane reduced the price target on Anglo American to 2,600p from 2,800p, maintaining a Neutral rating.
JPMorgan analyst Dominic O'Kane increased the price target on Glencore to 480p from 420p, maintaining an Overweight rating.
JPMorgan analyst Kian Abouhossein increased the price target on Barclays to 260p from 240p, maintaining an Overweight rating.
