(Sharecast News) - Citigroup has slashed its price target for EasyJet as it reduced full-year forecasts for the low-cost carrier.
The bank, which has a 'neutral' rating on the FTSE 250 airline, has reduced its price target to 550p from 660p.
The move was prompted by changes to the bank's forecasts, including those for earnings, volumes, pricing, fuel and unit costs. Citi now estimates that the London-listed firm will post a full-year pre-tax loss of £776m in 2020, compared to its previous target of a £561m loss.
For 2021, Citi has pencilled in a pre-tax loss of £159m, widening its earlier estimate for losses of £121m.
Buy shares of fashion retailer Superdry on weakness, broker Liberum said on Tuesday.
It said the company's full-year results on Monday were "as good as could be expected considering the Covid-19 impact".
Liberum said the headlines will no doubt focus on the size of the impairments and write-offs, which were larger than it expected but "all very sensible" considering the outlook and the need to reshape the cost base.
It noted that cash is currently around £50m and said that with new banking facilities, liquidity is not a concern.
Liberum said cost savings are on track and there is a clear focus to reduce inventories further, which is "a clear positive".
"The current market cap of £125m is now smaller than the value of the inventory (circa £158m) on the balance sheet. This has to be wrong considering momentum and the proven track record of this management to convert this into cash."
Berenberg raised its target price on real estate investment trust RDI from 100.0p to 115.0p on Tuesday, stating the group's portfolio rebalancing justified its rerating.
Berenberg said RDI's recent disposal activity was "transformative" as despite challenging market conditions, the firm had completed around £220.0m of disposals in the past two weeks and about £330.0m since announcing its strategic review 18 months ago.
The German bank noted that these moves had lowered retail exposure to 11.8%, lowered pro-forma loan-to-value to 30.2% and had accelerated RDI's transition toward a lower-levered, higher-growth, higher-quality business.
Berenberg, which also reiterated its 'buy' rating on the stock, added that RDI's share price was underpinned by the recent sale of a 29.4% interest to Starwood Capital at an implied price of 95.0p per share and highlighted that it still continues to see "significant upside" to current levels.
LONDON, May 17 (Reuters) - British businesses ramped up their search for new staff as pubs, restaurants and other hospitality and travel firms got ready for Monday's lifting of coronavirus restrictions in England, a survey showed.But an exodus of ...