Best of the Brokers for 03 July 2014

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Deutsche Bank has upped Ocado to “hold” after six months on a “sell” rating, reducing the target price to 330p from 350p. The broker thinks while there has been a slowdown in sales growth, expectations are more realistic, and there is now limited downside risk for its target price.

UBS has kept its “buy” rating, increasing the target price to 590p from 560p. The broker thinks continued benefits from the bakery’s food on the go strategy has helped improved like-for-like trading, with profits benefiting from lower food cost inflation, as it increased its forecasts.

Galvan Research kept its “buy” rating, with a target price of 410p. The broker says there is compelling logic for the recently announced merger with German parent TUI AG, offering a strengthened balance sheet and strong free cash-flow generation.