JP Morgan has lowered its price target for Spanish information technology group Indra this morning from nine to eight euros and reiterated its underweight rating on the stock.

Analysts at the US brokerage firm say that Spain’s spending cuts hurt the group’s outlook.

JP Morgan said that the European Central Bank’s liquidity injections into the banking sector only function when member governments work in the right direction, something president Mariano Rajoy is not doing.

Meanwhile, technical analysts at Digital Look have pointed out that Indra shares have fallen sharply after they recently moved below the 2012 low of €9.44. “They now trade at a multi-year low and will likely head lower in the following sessions.”

“Notwithstanding, the bearish gap left behind today may be hinting at an upcoming temporary rebound. This would only be confirmed with a close above a preceding high,” they said.

Indra was the most bearish Ibex component on Tuesday morning, down 3.45% at €8.43.

Facebook buys Instagram for one billion dollars

Social networking site Facebook has splashed out one billion dollars on Instagram, the photo-sharing smartphone app.

Instagram, which was only set up in October 2010, allows users to change the appearance of their pictures by applying filters.

It only launched as an Android app last week, having previously been available on the iPhone alone.

Instagram says its 30m users upload more than 5m photos every day.

Facebook will buy the firm with a mixture of cash and stock and has pledged to continue to develop Instagram as a separate brand, allowing users to post photos to rival networks.

“We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience,” Mark Zuckerberg wrote on his Facebook page.

“We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook,” he added.

“This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all.”

Facebook is set to $5bn raise on the NASDAQ stock exchange in May or June.

This would value the company at around $100bn.

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