Best of the Brokers for 23 April 2014

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ENERGY ASSETS
Numis gives Energy Assets an “add” rating and target price of 380p after the firm’s acquisition of the electricity metering business BGlobal for £2.3m on a debt free basis. Numis says the deal “provides the opportunity to cross-sell electricity metering services into its gas customer base.”

CIRCASSIA PHARMACEUTICALS
Cannacord initiates coverage of the the anti-allergy pharma company with a “buy” rating and target price of 341p, noting the firm’s treatments use advanced technology and is within a growing market. Cannacord, which co-managed the firm’s recent IPO, predicts high margins.

ROYAL MAIL
Bank of America Merrill Lynch yesterday raised its rating on the postal company to “buy” from “neutral”, saying the stock has the potential to gain 26 per cent, backed by strong cash generation. The broker thinks worries over an Ofcom investigation are overdone.