Best of the Brokers for 26 June 2014

To appear in Best of the Brokers, email your research to notes@cityam.com

KAZAKHMYS
Westhouse Securities has cut Kazakhmys to “add” from “buy”, keeping the target price at 350p. The broker thinks the news of reduced mineral extraction tax rates for mature assets as part of a planned restructuring is positive, but cut the rating to “add” on recent share price movement.

MARKS AND SPENCER
Barclays has maintained its “underweight” rating on Marks and Spencer, but cut the target price to 340p from 350p. The broker believes the company has yet to see a turnaround, and while it trades in line with the sector average, it offers consistently lower cash generation than its peers.

XCHANGING
Investec has reiterated its “buy” rating for Xchanging, keeping the target price at 210p. The broker thinks recent underperformance in the share price looks overdone, with investment likely to put the company in a good position to hit forecasts, making the share look cheap at current levels.