Best of the Brokers for 24 June 2015

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ASSOCIATED BRITISH FOODS
RBC Capital Markets has downgraded the Primark owner from “outperform” to “sector perform” with a target price of 3,200p. The broker said that while Primark relatively rare international roll-out story, the company is lacking earnings momentum and its sees more valuation upside elsewhere.

TESCO
HSBC has trimmed its earnings per share forecast for this financial year by 1.6 per cent but kept its target price of 295p and “buy” recommendation unchanged ahead of Tesco’s first quarter trading update on Friday, when like-for-like sales are likely to be down by two per cent.

GREENE KING
Barclays has upgraded Green King from “neutral” to “overweight” with a price of 821p after the pub group’s takeover of Spirit Pub Company was approved by the competition authorities. Barclays said the deal will drive the enlarged group’s return on invested capital higher between now and 2017.