Best of the Brokers for 10 November 2015

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Analysts at Berenberg are expecting more good news for BAE Systems, the British multinational defence, security and aerospace company. Reiterating their “buy” recommendation in a note out yesterday, the Berenberg team said they antici­pate the Saudis will put in an order for Hawk Trainer jets with a contract value of between £500m and £700m. Berenberg said any sign of progress on the Hawk deal was an “important lead indicator” of other big jet orders from Saudi Arabia.

Analysts at Shore Capital are bubbling over for Fever-Tree, upgrading the premium drink mixers firm from “sell” to “hold”. Calling the Fever-Tree brand an “excellent proposition that has come along as the right product, in the right place, at the right time”, the Shore Capital team praised Fever-Tree management for successfully executing their strategy while leaving little room for competitors to enter the sector.

Jefferies has downgraded its full-year profit estimates for Travis Perkins by two per cent for this year and five per cent for next year. The analysts said that the lower estimates reflect a “softer third-quarter trading environment”, but nevertheless jumped to the defence of the builders’ merchant and home improvement retailer, calling it the “best in class operator in the UK merchanting industry”.