Broker Tips: Stagecoach, Colt, Land Securities, Betfair

1st Jul 2015 10:51

RBC Capital Markets downgraded Stagecoach to 'sector perform' from 'outperform' but raised the target price to 425p from 395p.After minor forecast changes, the brokerage said it remains positively disposed to the company's strategy but sees the 12-month outlook now almost accommodated in the share price.In the next 12 months, RBC said as far as the outlook for UK Bus is concerned, it sees modest fare growth and rising labour costs. In addition, the brokerage warned that capital return is unlikely.Citigroup downgraded Colt to 'neutral' from 'buy' following a share price increase of around 27% over the last month, which means the stock is now trading an optimum level.The bank raised Colt's target to 190p from 175p, in line with the offer from Fidelity, which has made a 190p per share cash offer for the shares in the company it does not already own.Still, Citi said Colt's plan to overhaul the business by exiting from IT services to focus on Network, Voice and Data Centre is a positive move.Meanwhile, Citigroup has recommended investors buy shares of Land Securities, picking the stock out as one of its key 'overweights' in the UK property sector."The sell off in UK property stocks represents an opportunity and we would buy Land Securities, which offers 32% potential upside while trading at a 18% discount to T+1 NAV of 1,472p," the bank said.Shares in Betfair were among the highest risers on Wednesday morning after Morgan Stanley raised the stock's target price to 3,000p from 2,030p.Investors tempted to cash out after the stock doubled in the last 9 months, leaving the share price at a premium multiple, may miss out as the market has overlooked several attractions, the US bank said."Betfair is a long-term winner, using leading technology to grow market share. We see upsiderisks to forecasts, and high and ongoing cash returns."