Best of the Brokers for 15 January 2014

BSKYB
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.

DIAGEO
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.

MOTHERCARE
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.