Best of the Brokers for 04 December 2013

To appear in Best of the Brokers, email your research to notes@cityam.com

SMITH & NEPHEW
Morgan Stanley has raised its rating from equal-weight to overweight and raised its target to 904p from 757p. The broker thinks new products will offset a decline in market share and that the company will reap the benefits of a cost-cutting scheme set to be completed next year.

SPEEDY HIRE
Cantor Fitzgerald has lowered its rating of the industrial supplier to sell from buy following last week’s announcement of possible accounting irregularities. The broker slashed the target price to 45p from 75p and said it now values the company in line with its competitors.

ASOS
Liberum Capital has started covering the online fashion group with a sell recommendation and a price target of 3,000p. The broker believes that the company will struggle with increased pressure from competitors and low customer loyalty, as it loses its first-mover advantage.