To appear in Best of the Brokers, email your research to firstname.lastname@example.org
SMITH & NEPHEW
UBS has upgraded the medical technology group from “neutral” to “buy” with a target price raised from 780p to 1,000p. The broker is impressed by the popularity of S&N’s new knee replacement, and thinks the firm’s wound care product Santyl can grow 18 per cent over the next three years.
HOME RETAIL GROUP
Espirito Santo has a “sell” rating and fair value of 115p for the retailer. Despite rising consumer confidence in the UK, the broker points out that Britons have cut spending on home improvements. Nevertheless, Espirito Santo thinks the data bodes better for HRG than B&Q owner Kingfisher.
Peel Hunt tells investors to “buy” a slice of Domino’s and has set a target price of 594p. The broker thinks the pizza seller is moving well from a fast-growth firm to a mature business, with efficient infrastructure and a chairman who is well-placed to lead the search for a new chief executive.