Best of the Brokers for 22 May 2013

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ANTOFAGASTA
Canaccord Genuity retains a “hold” rating for the mining company and reduces its target price to 1,040p from 1,065p. The broker expects a decline in margins for 2013 as copper prices maintain their current levels and unit costs increase. Canaccord also made a full-year earnings upgrade as the firm’s results last week showed better than expected first quarter earnings.

EASYJET
UBS maintains its “buy” rating on the budget airline and increases its target price to 1,380p from 1,175p. The broker also upgrades the firm’s earnings after increasing its 2013 full-year yields forecast to six per cent and revising down the expected fuel price. UBS highlights that first half results in line with expectations and continued cost management are positive signs for the firm’s outlook.

SMITH & NEPHEW
Numis has increased its target price on the prosthetics specialist from 800p to 870p and maintained its “add” rating, having reduced its revenue forecasts by one per cent and operating profit by three per cent after first quarter results. The broker says capital returns indicate that the balance sheet will stay underleveraged without acquisitions, so it sees limited scope for the share price to catch its peers.