Best of the Brokers for 17 October 2013

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MICHELIN
Macquarie has an “outperform” rating on the tyre maker and a 12-month target of €91. The broker sees a moderate recovery in the EU car market, which combined with a strong bounce in truck tyres should push volumes up 2.7 per cent in the third quarter.

F&C ASSET MANAGEMENT
Numis keeps its “hold” recommendation and 107p target on the asset manager following an investor day this week. The broker remains sceptical of the firm’s ability to significantly boost its assets under management, and warns investors off the shares while weak net sales continue.

SERCO
HSBC has upgraded the outsourcing group from “neutral” to “overweight” with a target price of 635p. The broker reckons the markets have already priced in much of the anxiety around Serco’s commercial practices, and thinks the worst might be behind the firm.