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BEST OF THE BROKERS

SEGRO
The commercial property company’s prelims on 25 February will show the benefits of a strong upturn in UK industrial property values in the second half of 2009, reckons Execution Noble. Its shares are trading at a 13 per cent discount to Execution’s predicted full-year net asset value of 343p. Analyst Michael Burt rates the stock a “buy”.

MORGAN CRUCIBLE
Numis says the specialist materials group’s low valuation is unjustified after full-year 2009 earnings came in seven per cent ahead of the broker’s expectations. Analysts predict forward momentum in the shares as the firm shifts into higher margin end markets. Numis holds a “buy” rating with a target share price of 220p.

RECKITT BENCKISER
Evolution Securities has moved from “add” to “buy” after the fourth quarter saw a return to sales and margin growth in the core business. Sensible M&A could add value, the broker says, as could some payback on its US pharmaceutical pipeline. Evolution has upped its target share price from 3,350p to 3,700p.