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BEST OF THE BROKERS

<strong>HOLIDAYBREAK</strong><br />KBC Peel Hunt decreased its price target for Holidaybreak from 390p to 384p but retained its &ldquo;buy&rdquo; recommendation. The broker said that the firm&rsquo;s rights issue to fund expansion and accelerate development of its educational business books is well timed and could transform the group, even leading to a re-rating.<br /><br /><strong>NATIONAL EXPRESS</strong><br />Collins Stewart downgraded its 2009 earnings per share forecasts for National Express from 74p to 54p, to reflect weak trading in UK rail and also in Spain. It rates the stock as a &ldquo;sell&rdquo;, highlighting mounting losses in rail. The broker does not expect the Department for Transport to bail the company out and sees further risks ahead.<br /><br /><strong>TESCO</strong><br />Tesco&rsquo;s first quarter sales progression was encouraging, said Royal Bank of Scotland, which believes the retailer is managing consumer trends better than it did last year. RBS rates the stock as a &ldquo;buy&rdquo; with a target price of 502p, saying that the shares look inexpensive and that there is not much wrong with Tesco&rsquo;s business model.<br />