Best of the Brokers for 14 October 2015

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Panmure Gordon has downgraded its target price to 16.5p from 23p previously after a change in analysts at the firm. Despite its caution over diamond pricing in 2015, Panmure Gordon believes DiamondCorp remains a “special situation” ahead of the start of production. As a result, it has stuck with its “buy” rating and said further upside remains in the upcoming resource statement.

FinnCap has lifted its target price for Dotdigital Group to 45p from 40p previous after the company issued a strong set of results. Profitability was up 44 per cent year-on-ear, which was nine per cent ahead of Finncap’s forecast, while cash generation remained strong. The house broker has left its two-year forecast profit growth of 63 per cent unchanged.

Berenberg Bank has held its “buy” rating and raised target price from 350p to 360p after the sofa chain reported a surge in annual sales and profits last week. Berenberg said a key positive was the continued strong cash generation and higher-than-expected dividend of 9.3p for the year. DFS trades at a 25 per cent discount to the sector and the broker believes consistency of performance can drive a re-rating.