Best of the Brokers for 15 January 2014

UBS has hiked BSkyB from hold to buy with a target up from 880p to 1,100p due to a belief in Sky’s resilience despite increasing competition from the new BT Sport channel. UBS also said the firm could be a takeover target for Fox or a merger partner for Vodafone or Telefonica’s O2.

Liberum Capital thinks Diageo should mount a rival takeover bid for part or all of Jim Beam, following Suntory’s $16bn offer. The broker thinks a deal would help the drinks giant cement its position in the US whisky market while adding to its tequila brands.

Numis has cut the retailer from add to hold with a target of 275p following last week’s trading update. The broker continues to see potential for growth internationally but is also concerned about the chance of further deterioration in UK sales.