Best of the brokers for 03 September 2013

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INMARSAT
Morgan Stanley has upgraded the mobile satellite group from “equal weight” to “overweight’”with a rise in target from 740p to 820p. The broker thinks the market is being too cautious about the value of Inmarsat’s partnership with American firm LightSquared.

FRESNILLO
UBS has cut the miner from “buy” to “neutral” after recent share price strength, but keeps its target unchanged at 1,250p. The broker still values Fresnillo’s quality but sees the firm as expensive compared to its peers and next year’s price to earnings ratio of 36 times.

BETFAIR
Panmure Gordon has kept Betfair’s “buy” rating but has raised its target price from 1,000p to 1,317p. Improvements to gaming products and additional cost cuts can enable a growth of earnings at an annual growth rate of 10.2 per cent over the next three years, the broker reckons.