Best of the Brokers for 19 March 2014

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CARNIVAL
UBS keeps its “buy” rating on the cruise operator and raises its target from £25 to £26. The broker expects Carnival to post a $0.09 loss per share in its quarterly results next week, but believes the firm’s Costa ships will ride the sales wave going into the peak summer season.

BAE SYSTEMS
RBC Capital Markets has raised its rating on the defence and engineering group from “sector perform” to “outperform” with a target price of 490p, up from 450p. The broker thinks UK and US defence spending is starting to stabilise after several tough years.

TUI TRAVEL
Barclays sticks with its “overweight” rating for the holiday group and lifts its target from 445p to 500p following a meeting with management. The broker thinks the shares could be worth 600p once Tui improves its German business and benefits from a consumer confidence bounce in Europe.