Best of the Brokers for 22 April 2014

To appear in Best of the Brokers, email your research to notes@cityam.com

TESCO

HSBC cuts its forecasts on the supermarket by 11 per cent for this year as UK like-for-like sales and margins appear to be sliding further, and has advised Tesco to consider withdrawing from parts of Europe. The broker keeps its “underweight” rating and has cut its target from 260p to 230p.

PENDRAGON

Panmure Gordon has upgraded the car dealership chain from “hold” to “buy” with a target price of 35p, to reflect the stock’s slide behind peers in recent months. The broker hopes Pendragon will strike an upbeat note in next week’s trading update as new and used UK car sales continue to climb.

GLAXOSMITHKLINE

UBS has stuck to its “neutral” rating on the pharma giant but trimmed its target from 1,650p to 1,500p. The broker complains that Glaxo has again pushed back any prospect of growth in earnings per share, which has been made worse by pressure on sales in emerging markets.