Best of the Brokers for 17 December 2015

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Citi analysts have upgraded to “buy” from “sell”, arguing that GVC Holdings’ reverse take-over of the betting company should drive multiple upsides, including €125m (£91m) in cost savings and a broader spread of geographic, regulatory and product risk. It has also significantly upped its target price to 159p (from 65p) and initiated coverage of GVC with a “buy”.

Peel Hunt said the strategic joint venture and acquisition of Joey’s Pizza provided a “neat solution to the problem child” that is Germany. The broker believes Domino’s Pizza has given itself a much better chance of creating some value out of Germany and removed a big source of distraction for the management. It has retained its “add” recommendation and upped its target price to 1,027p from 1,000p.

HSBC cut its target price for Burberry from 1,800p to 1,500p and lowered its estimates following a sharp slowdown in like-for-like sales growth from six per cent in the first quarter to a decline of four per cent in the second quarter. The broker said the overall industry slowdown combined with the brand’s over-exposure to weaker regions such as Hong Kong and under-exposure to stronger regions such as Japan was to blame. However, it has retained “buy”, forecasting a steady recovery in sales.