Best of the Brokers for 29 January 2014

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ROYAL BANK OF SCOTLAND
Espirito Santo has a “neutral” rating and a fair value of 365p for the banking group, despite additional litigation and conduct costs amounting to £3.1bn. The broker expects that RBS will have sufficient capital to cover anything coming down the line, including the ongoing FX probe.

CHESNARA
Canaccord Genuity has reiterated its “hold” rating with a target price of 300p for Chesnara, based on a good track record and positive merger and acquisition prospects. The broker played up the insurance buyout firm’s competitive advantages and the limited regulatory risks it faces.

BG GROUP
UBS has issued a “buy” rating for the oil and gas company and set a price target of 1230p, down from 1400p. The company issued a profit warning a week before its results are due, but UBS is optimistic that a new CFO joining the CEO and chairman may help turn things around.