Broker tips: Shell, easyJet, Ryanair

18th Jul 2013 11:34

Nomura has downgraded its rating for oil major Royal Dutch Shell from 'buy' to 'neutral', saying that there's an absence of clear positive catalysts.With the benefits of earnings integration from Pearl GTL (gas-to-liquids) plant in Qatar earlier this year now priced in, Nomura sees little scope for positive near-term momentum and thinks that the shares will "tread water" until the evidence of project delivery is seen next year.JPMorgan Cazenove has upgraded its ratings for budget airline rivals easyJet and Ryanair as part of its review into the US and European airline sector.The broker said that the restructuring of the US airline industry has been so profound that so-called 'legacy' and 'discounter' airlines are "increasingly difficult to discern from each other". While many believe that the same shake-up could happen in Europe, JPMorgan's multiyear view of Europe envisions little restructuring actually standing in the way of "voracious growth appetites at higher caliber discounters.BC