Best of the Brokers for 19 July 2013

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SHELL
Nomura reduces its rating on the oil company to “neutral” from “buy” and cuts its target price to 2,400p from 2,500p. The broker thinks it will be difficult for the shares to outperform during the second half of the year and will probably remain muted until project deliveries in 2014.

MAN GROUP
RBC downgrades the hedge fund to “underperform” from “sector perform” and reduces its target price by 29 per cent to 85p. The broker revises down its 2014 forecasts for the firm due to continued negative flows and downward pressure on investment performance.

EASYJET
JP Morgan upgrades the budget airline to “overweight” from “underweight” and hikes its target to 1,540p from 625p following a review of the sector. The broker said the absence of Chapter 11 bankruptcy protection in Europe means that a US-style restructuring of established airlines is not likely and therefore the margin gap with the more flexible discount airlines will remain present.