views

BEST OF THE BROKERS

CAIRN ENERGY
Goldman Sachs downgrades Cairn Energy to “sell” from “neutral” saying it believes the shares are too expensive relative to peers. Sees better risk/reward elsewhere in the sector, and cites Cairn rival Dana as its best buy idea, upgrading it to “buy” from “neutral”. However, says Cairn’s assets and management are both “excellent”.

HENDERSON
Morgan Stanley reiterates its “overweight” rating on Henderson saying the market is currently underestimating the shift to higher margin assets driving revenue margin expansion. Sets a 153p price target, implying 25 per cent upside to the current share price. Notes M&A is also possible given New Star integration is almost complete.

CENTAUR MEDIA
Numis reiterate its “buy” rating on Centaur Media despite the group’s 24 per cent decline in first half revenues, saying there was a marked improvement through the period, with Oct-Dec down 15 per cent compared with Jul-Oct’s 28 per cent fall. Sees margins improving and Centaur as undervalued given potential for a profit rebound.