Financial market research and analysis

There appears to be a mist of negativity descending over the FTSE which is trading flat exacerbated by a host of brokers taking a red pen to individual stock ratings. 

Hikma Phrama (-5.08%) taking the bottom spot on the FTSE this morning as it cuts its generics forecasts to $150m down from the previous expectations of $175-200m.

BAE Systems (-1.14%) The FT reported that Europe’s largest defence contractor has agreed to buy a 20% stake in rocket engine maker Reaction Engines for £20.6m

HSBC (-1%) Bucking the trend of recent banking results, HSBC reported a better than expected 32% rise in pre-tax profit for Q3, this was mainly due to a reduction in costs from fines and settlements with regulators. A slowdown in Asia and the decline in equity markets there impacted revenue to the downside. It dropped 4% from the previous Q3 to $15.1bn. HSBC chairman Douglas Flint says the board has asked for more information about possible HQ move. Could delay decision beyond end of year.

Vodafone (-0.16%) Following on from the cyber-attack at Talk Talk last week, Vodafone UK reported on Saturday that hackers had accessed 1,827 customer accounts during the week.

Ryanair (-0.96%) Ryanair expects to post annual profits at the upper end of its forecast range as fuller-than-expected planes lift passenger numbers but remains lower this morning as it falls in sympathy with EasyJet and IAG.

BP (+0.66%) Raised to equal weight at Morgan Stanley.

EasyJet (-3%) cut to reduce versus hold at HSBC citing increased revenue pressure from capacity growth going into the winter. New price target of 1600p

IAG (-1.72%) cut to reduce versus hold at HSBC. PT of 625p. Company may struggle to exceed market view given high investor expectations

Whitbread (-1.3%): Downgraded by Numis. The company likely faces a slowdown in growth owing to competition from Travelodge and Airbnb. Cut to reduce with a new price target of 4440p v 5600p.