International Airlines Share News (IAG)

Tesco's stock was back on investors' shopping lists again on Wednesday after HSBC upgraded its rating on the UK grocer from 'underweight' to 'neutral' and lifted its target price from 175p to 195p.Though sentiment is still fragile after a string of profit warnings and an accounting scandal at the supermarket group, the bank said it sees an "improving risk profile".This has been "implied by recent board appointments, decisive action by the chief executive and a share price 52% lower than a year ago", said analyst Dave McCarthy.Tesco has now suspended its fifth executive since revealing that it had overstated its profit guidance for its first half by £250m. The company also said that the boss of catering group Compass and the former chief of IKEA would be joining its board from November, as it attempts to restore confidence amongst shareholders.It was also rumoured that chairman Richard Broadbent would consider stepping down once an independent investigation by Deloitte into Tesco's accounting practices is complete.McCarthy said: "We expect further bad news on accounting, pensions and a re-basing of profits, but believe much of this is now in the price."Focus is shifting to the positive with balance sheet concerns to be addressed (through a rights issue and/or asset disposals) and more senior appointments, executive and non-executive, and probably including a new chairman."He said that there is still likely to be "more pain along the way", but the recent positive news should support the share price. Aerospace and automotive group GKN should be able to weather any impact on its car parts business of economic weakness in Europe, according to Westhouse Securities.Westhouse analysts, who met investor relations executives from the company on Tuesday, said they left feeling encouraged about its markets, revenue and margin trajectory of GKN's key businesses, in particular drive-shaft business Driveline."While slowing economic data from the Eurozone and Asia is likely to have some impact on global vehicle production if sustained, we believe the impact on GKN may be modest," the broker said in a note."We leave our earnings per share estimates and 450p price target unchanged." Airline investors should check in with Ryanair and IAG rather than rivals, according to Bank of America-Merrill Lynch (BoAML).The broker prefers companies such as the Irish budget carrier and the British Airways and Iberia owner that are likely to see consensus earnings upgrades, it said in a note.BoAML has 'buy' recommendations on IAG and Ryanair, a 'neutral' on Lufthansa and 'under-perform' ratings on Easyjet and Air France-KLM.It said Ryanair was "stealing the baton" from Easyjet as the former copies much of what the latter pioneered, describing the Irish airline's second half yield guidance as conservative.BoAML said: "With no fewer than three 'investor days' in November/December (in our view, a statement of intent & confidence, if ever there was one), alongside strong Q3 traffic and a share price down 14% in the year to date, we would buy the shares here."It added that Lufthansa's planned cost savings were untenable, that Easyjet was struggling to show investors how it would deal with a short-haul price war and AF-KLM was facing competition from Easyjet and Gulf carrier Etihad.