Best of the Brokers for 11 June 2015

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

GALLIFORD TRY
Panmure Gordon reiterated its “buy” rating on the miner, and highlighted the risk of structures such as Incwala, the firm’s Black Economic Empowerment partner. The broker said the “low levels of effective black ownership on a ‘look-through’ basis” and questioned its political sustainability.

IMI
Besi Research upgraded its recommendation on the engineering firm from “neutral” to “buy”, and said that over 2016-2019 “some £150m of working capital could be released” which could be used to fund bolt-on acquisitions or be returned to shareholders via a special dividend.

LONMIN
Numis reiterated its “hold” rating for the building group. The broker said the firm’s hybrid model is unusual in the sector and said: “Whilst we agree with the underlying rationale, our analysis suggests that it has not resulted in a material advantage relative to peers.”