Best of the Brokers for 11 June 2014

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BABCOCK
Panmure Gordon keeps its “buy” rating for Babcock and a target price of 1,525p. The broker thinks Babcock’s withdrawal from a Ministry of Defence property management contest presents some headwinds to growth, but the firm’s pipeline is strong enough to offset the loss.

JUST RETIREMENT
Espirito Santo has restated its “buy” rating for Just Retirement, but has cut its target to 237p from 295p. The broker noted that while recent annuity rule changes were challenging, the market expects firms such as Just Retirement to evolve their product to gain from the growing retirement market.

SPORTS DIRECT
Goldman Sachs has removed Sports Direct from its conviction buy list, but still maintains a “buy” rating and 1,100p target. While the broker expects the firm to dominate UK sportswear and expand its margins, it sees higher upside elsewhere in the European retail market.