RBS has downgraded UK lending giant Lloyds Banking Group from buy to hold, saying that there appears to be a lack of catalysts for the shares in the near-term. "Given what looks to us like an overambitious top-line strategy, a tough economic backdrop, regulatory uncertainty and limited repatriation of capital until 2015, we see little potential for the shares to achieve a sustainable re-rating in the next 12 months," said analyst Asheefa Sarangi and Ian Smillie. RBS thinks that the full delivery of the Lloyds investment case is unlikely to unfold before 2015, and slashes its earnings forecasts for FY11-13 by 48%, 29% and 29%, respectively. As such, the broker downgrades its rating and cuts the target price by over 40% to 47p, from 80p previously. "[Shire] has one of the most outstanding revenue prospects of the pharmaceuticals companies that we cover," according to Matrix, which confirms a buy rating. The broker believes that Shire's second quarter results (announced Thursday) were "outstanding", and the strong revenue earnings growth should prompt significant upgrades to 2011 and beyond. While the broker is reviewing its numbers, it confirms a target price of 2,300p for now. UBS has reiterated its buy rating and raised its target price for catering giant Compass, saying that the investment case has now shifted to cash returns and cashflow growth. The broker now believes that share repurchases from next year are likely, given that management want to avoid a "lazy balance sheet". "Combined with a 50% dividend payout this means that cash returns to shareholders are estimated at 7%+ in FY'12, and almost 9% in FY'13. Combined with 9-11% [per annum] growth in free cash flow then Compass appears to offers mid- to high-teens total returns, assuming no de-rating in the valuation," UBS said. The target price is upped from 635p to 660p. BC