Best of the Brokers for 8 January 2014

SEVERN TRENT
JP Morgan downgraded the water company to underweight, reducing its price target from 1,680p to 1,535p ahead of the regulator’s announcements on financial parameters. The brokers believe regulatory risks will rise, slimming the chances of mergers and acquisitions until Ofwat’s final decision.

ITV
Jefferies has raised ITV from a hold to a buy rating and hiked its target price from 110p to 231p. The broker believes the broadcaster will benefit more than its rivals from the improving market for TV advertising, and thinks ITV could do more to adapt to multi-platform media.

BBA AVIATION
Liberum Capital has cut the business jet specialist to sell, from hold, with an unchanged target of 290p. While there are some signs of recovery in business plane flights, the broker is sceptical that the sector can return to its pre-crash peak.