Best of the Brokers for 10 April 2013

GREENCORE

Greencore Group PLC

Peel Hunt has started covering the convenience food provider with a “hold” rating and target price of 105p. The broker thinks British sales of ready meals will be weighed down this year in the wake of the horsemeat scandal, meaning profits at Greencore will be driven by its US business. A high level of debt and a pension fund deficit have made Peel Hunt cautious about the stock.

EASYJET

EasyJet PLC

Morgan Stanley has raised its price target on the airline from 1,060p to 1,375p and maintained its “overweight” rating. The broker thinks both EasyJet and Ryanair can deliver at least 50 per cent of their current market cap by 2020, thanks to growth potential in the short-haul Europe market and structural cost advantages over the legacy airlines.

NESTLE

Nestle SA

Canaccord Genuity has cut its recommendation from “buy” to “hold” on the food and drinks conglomerate and keeps its target at SFr69. Nestle shares have outperformed the Swiss index by 11 per cent in the year to date, the broker notes, and the company is facing headwinds including currency fluctuations and softer emerging market growth.

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