Best of the Brokers for 20 May 2013

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GREAT PORTLAND ESTATES
Peel Hunt rates the London-focused property group “hold” with a target price of 500p ahead of the firm’s full-year results on Wednesday. The broker points out that earnings are expected to be lower than last year due to a fall in lease surrender premiums, but net asset values will rise as development projects get off the ground. Peel Hunt expects to upgrade its ratings as more building projects get underway.

HOMESERVE
Ahead of full-year results tomorrow, Cantor Fitzgerald keeps its “sell” rating on the household insurance group and lowers its target from 210p to 180p. The broker has cut its estimates for the year by four per cent and expects a disappointing performance in the UK business as problems linked to a mis-selling probe linger on. Cantor also predicts negative earnings momentum going into 2014.

THOMAS COOK
Morgan Stanley keeps its “overweight” rating on the travel group and raises its target price from 150p to 190p following last week’s news on the firm’s £1.6bn refinancing package. The broker cheers the plan for eliminating the risks on Thomas Cook’s balance sheet and is impressed by the pace of cost-cutting and trading improvements.