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BEST OF THE BROKERS

BRITISH AMERICAN TOBACCO
Morgan Stanley advises investors to “overweight” British American Tobacco shares ahead of tomorrow’s full year results. Says pricing strength, cost savings, improved economic conditions and a reduced hit from currency transactions will mean “solid” earnings per share growth. Raises target price to 2,350p, and highlights favourable industry operating conditions.

N BROWN
UBS upgrades N Brown to “buy” saying the shares are undervalued. Believes concerns over bad debts are overdone, pointing out the shares have fallen 22 per cent in the past three months. Says its niche in plus-size clothing positions it well to benefit from growing levels of obesity, and sees upside from international expansion. Sets a 250p price target.

BUNZL
Nomura reiterates its “buy” rating on Bunzl, saying it expects merger and acquisition activity to return driving earnings, higher. Believes its £0.5bn war-chest puts it in a strong position. Cites increasing inflationary pressures as another factor that will drive product prices, and consequently earnings higher. Increases target price to 775p from 750p.