Best of the Brokers for 16 May 2013

Canaccord Genuity has cut its rating on the energy explorer from “buy” to “hold” and kept its price target at 1,300p following a strategy update. The broker sees few catalysts for a further recovery in BG’s shares for the next two or three years, but remains keen on the firm’s LNG projects and its strong focus on exploration. At current levels, BG shares have a 33 per cent upside to Canaccord’s valuation.

Numis has a “buy” rating on the media group and hikes its target price from 787p to 895p ahead of first-half results on 23 May. The broker considers DMGT a key pick and sees scope for forecast upgrades during 2013. Following a detailed pre-close statement in March, Numis is looking for guidance on trading during the rest of the year.

Edison Investment Research has started covering the engineering group with a bullish view, seeing a fair value of 1,419p. Analysts at Edison think Rolls-Royce’s current share price fails to properly value the firm’s long-term visibility on orders and an improving operational performance. Revenues are set to double over the next decade, Edison reckons.