Broker tips: Meggitt, Compass, DMGT

23rd Nov 2011 12:55

UBS has downgraded Meggitt from neutral to sell after cutting back its earnings forecasts for this year and the next."Meggitt has also outperformed the European aftermarket stocks by 12% over the last three months and is within 7% of its all time high. Meggitt is on the UBS M&A watch list," the broker said.The target price was cut from 340p to 330p.Seymour Pierce has reiterated its buy rating and 650p target for contract caterer Compass following the group's full-year results."The outlook is positive and we expect Compass to continue to improve organic growth and margin," Seymour Pierce said."Acquisitions will continue to feature in the coming months but the company has now turned its attention to the efficiency of the balance sheet and we expect more cash to be returned to shareholders."Peel Hunt has kept its hold rating on publisher and exhibitions organiser Daily Mail and General Trust, saying that the firm is a mixed bag of media assets of varying quality."We like the B2B businesses, but their performance continues to be diluted by the Consumer businesses, where efficiency programmes and cost-cutting will continue into the current year," said analyst Patrick Yau.A 462p target price was maintained.BC