Best of the Brokers for 02 October 2014

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ROYAL MAIL
UBS has upgraded to “neutral” from “sell”, but cut the target price to 400p from 450p. The broker believes Royal Mail is no longer significantly overvalued now, with near-term earnings estimates more realistic, but cautioned on modernising challenges and tough trading conditions.

SPORTS DIRECT
Numis has upgraded its rating to “buy” from “add” ,with the target price kept at 850p. The broker believes Sports Direct’s European operations will provide significant long-term growth opportunity from expansion, and the success of its sports retail model will continue to thrive.

AFRICAN MINERALS
Canaccord Genuity has reduced to “hold” from “buy”, and cut the target price to 20p from 150p. The broker is nervous over management’s ability to secure financing for a saprolite concentrator, with doubts raised by low iron ore prices, delay in the Teewoo deal and a longer Ebola outbreak.