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BEST OF THE BROKERS

QINETIQ
Evolution Securities says Qinetiq is the victim of a “vicious squeeze” as robot and armour sales have yet to rise despite other equipment manufactures reaping the benefits of the recent surge in Afghanistan. It predicts restructuring costs under new chief executive Leo Quinn and adopts a “sell” position with a target price of 125p

SDL
Altium Securities expects SDL to surpass forecasts with revenue of £172m and pre-tax profits of £30m despite challenging conditions last year. SDL’s acquisition of
software vendor Fredhopper expands its solutions portfolio and is welcomed by Altium, which reiterated its “buy” position with a new target price of 525p.

CLOSE BROTHERS
Collins Stewart has restated its “buy” rating of Close with a target price of 1,000p, ahead of what the broker believes will be cautiously upbeat interim results. It thinks the banking group will beat forecasts for asset management, banking and securities, and that improving market conditions will boost future performance.