Best of the Brokers for 23 April 2013

Panmure Gordon has a “buy” rating on the insurer and investment group with a target price of 420p ahead of an interim management statement tomorrow. The broker expects the firm to report greater cost cutting since last year alongside a five per cent rise in assets under administration since the end of 2012. Panmure thinks a recent slide in the shares in merely linked to a pause in the broader equities market.

UBS has cut its rating on the fuel explorer from “buy” to “neutral” and slashed its target price from 70p to 20p. While the firm has a strong track record, the broker is struggling to predict how Chariot’s valuation will progress until it finds a drilling partner and makes a commercially viable find. UBS has also cut its earnings forecasts in line with Chariot’s guidance alongside its full-year results.

Shore Capital has a “hold” rating on the supermarket and a target price of 380p. The broker thinks Sainsbury has a chance to benefit from rival Tesco’s partial withdrawal from UK site development by building up its own portfolio. However, Shore is looking for Sainsbury to be more disciplined with its capital ahead of preliminary results next month.