Best of the Brokers for 14 May 2013

Outsourcer Capita has been upgraded from “sell” to “neutral” by analysts at Espírito Santo who believe they have previously underestimated its “positioning and prospects”. They have also increased the stock’s fair value from 700p to 900p. “Whether organic or acquisitive, it appears increasingly likely that Capita can sustain good revenue growth into the medium-term,” the note says.

Panmure Gordon yesterday reiterated a “buy” rating on telecoms testing company Spirent following news that Samsung should be ready to launch 5G mobile phone networks in 2020. According to analysts the FTSE 250 business is well-placed “to ‘surf’ that forthcoming technology wave”, issuing a target price of 139p. The note says fellow listed telecoms businesses Filtronic and Anite will also benefit.

Banking giant HSBC has been downgraded from “buy” to “reduce” by Investec following recent gains. With a target price of 735p, the note suggests the company is “generating far more capital than it is able to deploy” due to muted loan growth. “We do not doubt that HSBC will signal a fresh assault on costs at its strategy day on 15 May, but we also need accelerated capital repatriation,” Investec says.