Rentokil Initial ShareCast News (RTO)

You only need to look at the share price to see the warm welcome the City has given to the appointment of City veteran Sir David Walker as the new Chairman of Barclays, but just in case, brokers have been weighing in to lend their support.

"We struggle to see how the board could have found a better candidate for the role given his long career in financial services, including both investment banking and retail banking, close connections with the Treasury and Bank of England, and his keen interest in corporate governance via the Walker Review," is the view of Gary Greenwood at Shore Capital.

"Importantly, he also has no previous ties with Barclays that we are aware of, making him the independent appointment that we had deemed a necessity if Barclays is to clean up its reputation," he adds.

Meanwhile Ian Gordon at Investec applauds both the choice of Chairman and the speed with which it was made, but suggests that the appointment of a new Chief Executive is more important.

"Above all else, we see Barclays as a strong, defensively positioned bank trading at the wrong price," Gordon argues, adding that it has outperformed all UK banks since its LIBOR scandal-related sell-off.

Credit Suisse has trimmed its earnings estimates for Ryanair, the pioneer of the 'anything extra costs more' airline model, after the Irish firm's first quarter figures came up short.

The Swiss bank is cutting its earnings forecasts by 7%-16%, resulting in a cut in the target price to €4.75 from €4.85, but is sticking with its "out-perform" rating, pointing to an attractive relative to rival no-frills operator easyJet.

Credit Suisse thinks Ryanair could deliver a guidance upgrade in November, whereas easyJet "may be cautious into winter at the start of a new financial year."

It is time to let rat-catcher Rentokil out of the dog-house, according to Peel Hunt, as the fallen stock market star appears to be finally getting to grips with its troubled courier business unit City Link.

"The turn-around of City Link appears to be getting back on track. Once it is clearly demonstrated that the business is fixed, there is the potential for a higher rating for the shares," reckons Christopher Bamberry at Peel Hunt. "Meanwhile, however, we remain concerned over the mounting European headwinds Rentokil faces and the mature commoditised nature of their end markets," Bamberry added.

That may explain why he has stuck with his target price of 75p, slightly below the current market price. The broker's recommendation, however, is now to hold the shares rather than sell them.



JH