To appear in Best of the Brokers, email your research to firstname.lastname@example.org
Nomura has cut the oil services group from “neutral” to “reduce” and raised its target from 90p to 140p as part of a wider review of the sector. The broker thinks industry-wide earnings predictions for this year are around 15 per cent overdone, and based on unrealistic capital expenditure forecasts.
MARKS & SPENCER
HSBC has upgraded the retail giant from “neutral” to “overweight” and shifted its target from 490p to 550p. The broker thinks M&S is best-placed among its high street peers to benefit from any uptick in economic confidence, as 90 per cent of its revenue is linked to the UK consumer.
Cantor Fitzgerald keeps its “buy” rating and target of 750p following the equipment hire firm’s first quarter update this week. The broker sees the share price slump as a good chance to buy, and is expecting 21 per cent earnings growth that would back up a recovery in the stock.