Best of the Brokers for 16 May 2014

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VODAFONE
UBS keeps its “buy” rating on the telecoms group but trims its target from 275p to 255p ahead of the firm’s fourth-quarter results next Tuesday. The broker expects revenues of £43.9bn and adjusted operating profits of £4.9bn, both higher than consensus estimates.

IGAS
Westhouse Securities has upgraded the shale gas specialist from “add” to “buy” and raised its target from 150p to 174p. The broker is impressed with IGas’ planned takeover of Dart Energy, and believes the enlarged firm will have the scale needed to catch the interest of the oil majors.

MARKS & SPENCER
Berenberg has begun covering a string of fashion retailers, and has started off M&S with a “hold” rating and a 415p target. The broker thinks the squeeze on the high street chain from discounters will continue, making it tough for M&S to get a return on its capital spending.