Boat rocking, questions rolling, but valuation troughing
■ Upgrade to Neutral with an 845p TP. We believe most negatives are in the
price now (with the shares underperforming the STOXX600 by -41% over 12
months), after the string of profit warnings since early 2014. The last
remaining risk we see is on Power Systems, where the guidance has been
maintained despite a lacklustre environment and a weak H1. Our 2015-16
PBIT expectations are 7-8% below consensus for this business.