Deutsche Bank downgrades Intertek to 'hold'

Product testing group Intertek was trading in the red on Thursday after Deutsche Bank downgraded its recommendation on the stock from 'buy' to 'hold'.

While concerns the group's exposure to the oil and gas sector are already factored into the share price, Deutsche said the company has "more limited cross-selling potential than its peers in the long run".

"There is opportunity for new chief executive officer, André Lacroix, to improve growth, but this may take time," the bank said.

In its review of the wider testing and inspection sector, Deutsche said that end-market growth is likely to be slower than historical averages.

"Our long held view is that there will be less boost from commodities exposed businesses and that globalisation will happen at a slower rate," it said.

The bank cut its target price for Intertek from 2,725p to 2,654p, causing the stock to fall 1.7% to 2,532p by 11:32.