Broker tips: Vectura Group, Intermediate Capital Group, BT Group

25th Nov 2011 12:08

Analysts at Singer Capital write today that, "NVA237 (COPD) has been filed with Japanese regulators by Vectura's development partner Novartis. In addition Vectura has highlighted a respiratory-based copromotion agreement between Novartis and Japanese company Eisai, whereby the latter will help market both NVA237, and if approved, QVA 149, both which will yield royalty payments to Vectura. "We maintain that the fundamentals for Vectura remain strong. Today's news indicates that the company's portfolio continues to progress, in the hands of partners Novartis, despite US regulatory delays. "We maintain our Buy recommendation and 120p target price, and continue to view the recent share price weakness as (i) unwarranted, and (ii) a buying opportunity."Analysts at Credit Suisse have this morning cut their price target for shares of Intermediate Capital Group to 225p from 380p, but while retaining their outperform recommendation. The above action has been taken after modifying their forecasts for profits before taxes for fiscal year 2012 by 5%, to £177m, and for fiscal year 2013 by another 14%, to £178m.Credit Suisse however also indicates that, "In our view, given the wall of refinancing combined with de-leveraging across the European banking sector should provide opportunities for providers of capital such as Intermediate Capital. Analysts at Credit Suisse have this morning reiterated their outperform stance on shares of BT Group. The above despite cuts to their forecasts for BT´s Global IT Services division, on the back of economic weakness in the Eurozone. As well, Credit Suisse now expects to see less growth in market lines at BT´s retail division. As a result of both of the above these analysts now estimate that BT Group´s 2013 and 2014 group revenues will come in 1% below market consensus. However, they are more optimistic than other analysts as regards the company´s ability to cut costs and see positive trends in UK wireline growth. They also see higher prices in broadband. Credit Suisse reiterates its outperform rating on the company´s shares with a price target of 220p. AB