Best of the Brokers for 15 October 2015

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WH Ireland maintained its “buy” rating on the luxury furnishings business, following interim results which showed a positive performance. The broker noted that “investment has continued to be made across the business, which should help to underpin growth over the coming years”, and kept its 250p target price, which it said reflects the progress being achieved as well as the firm’s long-term growth potential.

Jefferies reiterated its “buy” rating on the housebuilder, but upgraded its profit forecasts for 2016 and 2017 after results for 2015 came in ahead of estimates. The broker noted that activity in London continues to be strong for the group, and said it likes the fact that the company “is focused on the more affordable areas… Bellway’s delivery is understated and it quietly gets the job done,” the broker said.

Shore Capital retained a “hold” stance on the outsourcing group, which has recently made a recommended offer for Xchanging. The broker believes Xchanging would be a good fit within Capita, and said the firm yesterday made a strong case “on a strategic basis for the acquisition”. Shore Capital sees potential for earnings accretion of around four per cent in 2016 and seven per cent in 2017 if the deal completes.