Best of the Brokers for 10 July 2013

BRITISH AMERICAN TOBACCO
Canaccord Genuity downgrades the manufacturer of Lucky Strike cigarettes to “sell” from “hold” and cut its target price to 3,000p from 3,225p. The broker concludes the fast-growing e-cigarette market will have a substantial impact on margins and profitability of major tobacco companies.

SYNTHOMER
Numis Securities upgrades the specialty chemical firm to “buy” from “add” with a target price of 245p. The firm has a strong balance sheet and an inexpensive valuation due to expectations of weak first half results next month, the broker reckons.

ELECTROCOMPONENTS
Cantor Fitzgerald reiterates a “buy” rating for the electronics distributor with a target price of 300p ahead of quarterly results next week. The broker thinks the company will benefit from easy comparatives and strategic initiatives, and highlights an attractive five per cent yield.