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BEST OF THE BROKERS

PETROFAC
Morgan Stanley reiterates its “underweight” rating on?Petrofac despite income for 2009 coming in eight per cent ahead of its expectations. Says the strong outlook for the firm is already priced into the shares, making its valuation pricey compared to peers. Believes investors will find better value elsewhere in the sector.

BOVIS HOMES
Citigroup advises investors to “buy”?Bovis, citing its recent full-year results which produced profits ahead of expectations. Pre-tax profits of £4.8m were ahead of an expected loss of £4.4m due to an asset write-back. Citigroup says Bovis has a good long-term land bank and strong cash position which supports land acquisition.

WM MORRISON
Nomura reiterates its “buy” rating on Morrison’s ahead of tomorrow’s preliminary results. Expects a “strong set of numbers”. Also believes the shares will continue to outperform in 2010 in anticipation of the arrival of new chief executive officer Dalton Philips.

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