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BEST OF THE BROKERS

<strong>RIO TINTO</strong><br />Citigroup said that Rio Tinto&rsquo;s growth projects will come back onto the agenda now that the miner has pulled out of the Chinalco deal and confirmed a rights issue. to reduce its debt burden. The broker notes that dilution from the cash call will be less than if the Chinalco deal went ahead, and maintained its &ldquo;buy&rdquo; recommendation.<br /><br /><strong>THOMAS COOK GROUP</strong><br />Goldman Sachs removed travel operator Thomas Cook from its &ldquo;sell&rdquo; list and added it to &ldquo;neutral&rdquo; because it is undervalued. The broker&rsquo;s estimates have risen due to better-than-expected trading, but its 2009 net debt estimate is up to &pound;200m. Goldman raised its six-month price target to 240p.<br /><br /><strong>WOLSELEY</strong><br />Wolseley has delivered on its exit from the US Stock business, said Royal Bank of Scotland, and has raised &pound;1bn of equity. However, the broker remains concerned that operational gearing will undermine profitability and jeopardise long-term value-based support for the share price. RBS resumed coverage with a &ldquo;sell&rdquo;.