Best of the Brokers for 20 June 2013

AB FOODS
UBS reiterates its “buy” recommendation for the food and retail group but slightly reduces its target price to 2,030p from 2,080p. Despite a recent correction in share price due to uncertainties over the firm’s sugar division, the broker believes that the long term growth opportunity for Primark justifies a positive outlook for the group.

MAN GROUP
Cannacord Genuity maintains its “buy” rating on the hedge fund but downgrades its target price by eight per cent to 110p. The broker believes the firm’s capital restructuring allows for return and valuation enhancement. After a fall in performance of its flagship AHL fund earlier this month, the broker expects further de-gearing of guaranteed products and fresh outflows.

PADDY POWER
Numis Securities upgrades its rating on the Irish gaming group to “add” from “hold” and raises its target to €74 from €50. The broker thinks the group’s earning growth, strong cash position, and two per cent dividend yield justify its high valuation. The broker added there is an upside potential from online growth, and weakness in the share price provides a buying opportunity.