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BEST OF THE BROKERS

AIR FRANCE-KLM
The Royal Bank of Scotland (RBS) has upgraded its recommendation of Air France-KLM from “hold” to “buy” after brightening revenue trends in both passenger and cargo numbers. RBS has raised its forecasts, reflecting the stronger demand environment offset by higher fuel costs. It raises its target price to €14.

MARKS & SPENCER
Marks & Spencer (M&S) has been upgraded from “hold” to “buy” by Seymour Pierce. Seymour cites M&S’ fourth quarter trading statement, which it says was “really rather good”, for the change. Believes the business now has positive momentum. Seymour says the stock is lowly valued with a dividend yield of over four per cent.

RECKITT BENCKISER
Standard & Poor’s equity research has moved recommendations of Reckitt Benckiser from “hold” to “sell” after the share price has significantly underperformed over the last 12 months, which is largely due to investors’ concern about potential generic competition for Suboxone in the US.

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