Best of the Brokers for 15 July 2014

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TESCO
Cantor Fitzgerald has upgraded to “buy” from “sell”, raising the target price to 325p from 282p. The broker thinks Tesco is undervalued compared to peers, with potential in the reconfiguration of its UK operations, and online and convenience sales growing ahead of the rest of the market.

DEBENHAMS
Numis has upped its rating to “hold” from “reduce”, keeping the target price at 65p. While the broker still thinks the company faces pressure from the online shift, it believes management has seen the need for change with more prudent buying, and forecasts looking broadly achievable.

DS SMITH
Berenberg has kept its “buy” rating, but cut the target price to 350p from 400p. The broker thinks the fall of DS Smith stock since its results in June has been an over-reaction, and remains confident in DS Smith’s larger, more innovative business model in a tough packaging market.