…and some to sell

B&M European Value Retail City AM

Broker Haitong is unimpressed by the value retailer’s failure to address issues ranging from rent increases to sterling movement. The company’s refusal to reassure with plans for 2017 doesn’t help. Target 190p. Sell. 256p.

easyjet The Mail on Sunday

Revenue per seat at the low-cost airline has fallen, driving profits down 22%. Liberum is concerned that the current focus on long-term strategic advantage could cause “considerable short-term pain”. Sell. £10.71.

Marks & Spencer London Evening Standard

J.P. Morgan Cazenove says the high street giant has “no more rabbits in the hat”. Visibility is limited, and growing the food space by 30% over the next five years is “excessive”. The broker gives a target of 285p. Sell. 331p.

Melrose Industries The Times

Melrose buys underperforming engineers, improves them, and then sells them on. Analysts reckon the latest firm acquired, Nortek, could achieve twice its purchase price if broken up. Shares have doubled: take profits. Sell. 174.50p.

Mitie Group The Sunday Times

The outsourcer, which employs 60,000, operates on razor-thin margins and has been hit by spending cuts. Profits have fallen, the CEO is leaving, and analysts have slashed the target price to 165p. Sell. 210p.

Tui Sharecast

Morgan Stanley has downgraded the AngloGerman tour operator on fears that its heavy investment programme will dilute cash flow and earnings. Competition fears and rebranding costs add to the risks. Sell. £10.30.