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(Sharecast News) - Citi raised its target price on Wizz Air to 1,200p from 1,000p on Friday, but kept its 'neutral/high risk' stance as it cut its nearterm estimates despite lower fuel costs.
The broker said unit revenue and exfuel cost trends had weakened, prompting it to widen expected losses and now forecasts a 500m net loss for FY27, compared with company consensus of around 360m, and a 200m loss in the first quarter, versus expectations of roughly 170m.
Citi also models unit revenue down 3% yearonyear for the full year, with the bulk of the decline weighted towards the first half.
Despite planned capacity growth of 20% ASKs, Citi expects nonfuel unit costs to rise on both an underlying and total basis, saying improvements here will be critical for Wizz's competitiveness over the next two to three years.
Citi also described mediumterm consensus as "overly optimistic", sitting 37% below expectations for FY28-30 on average.
Berenberg initiated coverage of Brooks Macdonald with a 'buy' rating and a 1,600p price target on Friday, arguing that the current share price undervalued the group's recovery prospects despite clearer signs of improving net flows.
The German bank said Brooks now offers a holistic wealthmanagement service across investment management and financial planning for both advisers and private clients. While the evolution to this model had created shortterm earnings headwinds, Berenberg said it expected the business to return to earnings growth in a sector with longterm structural expansion. It also highlighted the current EV/EBIT multiple of 6x as too low given the outlook.
Berenberg pointed to structural market drivers, noting an addressable market growing at around 7% a year and the importance of Brooks' exposure to managed portfolio services.
The broker expects FY26 to mark an inflection point - with flows, revenues and operating margins returning to growth after recent headwinds - and forecasts 8% compound annual growth in operating profits over the next three years.
Cash generation was also expected to improve as restructuring and acquisition costs fall away, supporting rising dividends. Berenberg sees the yield increasing from around 6% in FY26 to more than 7% in FY28, backed by a robust balance sheet.
Berenberg added that its 1,600p target price, based on a discounted cashflow model and equivalent to roughly 11x FY27 earnings, implied around 25% upside.
Shore Capital upgraded Close Brothers on Friday to 'buy' from 'hold' and lifted its price target on the stock to 495p from 490p as it pointed to favourable risk versus reward.
The broker noted that Close Brothers shares have fallen back towards 400p, underperforming the wider sector despite no meaningful deterioration in the investment case.
"Motor finance uncertainty continues to weigh on sentiment, but recent legal and regulatory developments appear largely procedural, while management has made no further adjustment to its 320m provision since May," it said.
"With the shares trading on an FY26F P/TNAV of just 0.5x and with management targeting a double-digit return on tangible equity by FY28F, we believe investors are adequately compensated for the risks."