Exane BNP Paribas has upgraded its recommendation on Cobham (LON:COB) to ‘neutral’ from ‘underperform’ despite the aerospace group’s latest profit warning, saying it sees little risk of further downgrades and that downside risk is limited.
The broker commented: “Following the significant downgrade to guidance, we do not deem another likely for FY16.”
It added: “The new management team could potentially change the investment case, but until their first announcements (which are likely to be at the FY16 results) we do not see any catalyst (positive or negative) for the name.”
Analysts have cut their target price by 7 per cent to 130 pence a share.
Separately, JP Morgan Cazenove repeated its ‘neutral’ call on the stock and cut its target to 145 pence (from 185 pence).
Meanwhile, Barclays Capital remained at ‘equal weight’ but cut its target to 167 pence (from 183 pence).
At 1:34pm: (LON:COB) Cobham PLC share price was +4.75p at 144.45p
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