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BEST OF THE BROKERS

UBS
JP Morgan reiterates it’s “overweight” stance on UBS. It highlights strong trading during the first half of January due to a significant pent up of demand from December with prearranged trades from clients. Together with a market correction for the second half, it believes UBS is in a strong position compared to rivals.

ALLIED IRISH BANK
Goldman Sachs reiterates its “neutral” position on Allied Irish Bank, saying the bank’s recent debt exchange should be positive for shareholders short-term. But warns that long-term, the bank will need to raise “substantial” amounts of equity tier one capital, and warns it also has limited capital to execute additional liability management deals.

BARCLAYS
Morgan Stanley rates Barclays as “overweight” and has raised its target price by 19 per cent to 440p. Morgan Stanley says Barclays has strong operating leverage, which it thinks is underestimated by the market. It estimates Barclays top line income will fall by 12 per cent in 2010 and recover five per cent in 2011.