Best of the Brokers for 1 July 2013

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

DUNELM
Panmure Gordon upgrades its target price for the homewares retailer to 1,013p from 940p and reiterates its “buy” recommendation ahead of the firm’s quarterly results next week. Despite tough comparatives, the broker thinks the results will be better than previously expected.

DIRECT LINE
Canaccord Genuity increases its target price almost 14 per cent to 250p for the insurance group and retains a “buy” rating following the group’s announcement last week of an additional £130m of cost savings for next year. The broker expects a 15 per cent increase in earnings per share.

PERFORM GROUP
Numis Securities maintains its “add” recommendation for the sports digital media group despite a sharp price decline after the firm forecast a profit growth slowdown last week. Numis reiterates its positive outlook on the firm and sees the share price reduction as an opportunity to buy.