Best of the Brokers for 8 October 2014

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BAE SYSTEMS
Cantor Fitzgerald downgraded BAE Systems to “hold” from “buy”, although the broker said that despite increasing geopolitical risks and operational requirements, it felt that the defence company was “entering a period of relative calm”. It retained a target price of 460p.

PETROCELTIC
Westhouse Securities downgraded its “buy” rating to “neutral”, following a 23 per cent move in share price to 219p, after the news that Dragon Oil was preparing to make a cash bid for the company at 230p. The broker said it did not believe a competing bidder was likely to emerge.

PURE WAFER
WH Ireland reiterated its “buy” rating, stating that while four years ago the company was in a net debt position of almost $20m, it yesterday reported a net cash position of $1.5m reflecting not only a £4.5m equity injection in 2012, but also strong cash generation from operations.