Best of the Brokers for 24 April 2013

BOOKER
Goldman Sachs has cut the wholesaler from “neutral” to “buy” following a 36 per cent jump in the share price over the last year that leaves Booker trading at a 65 per cent premium to the European food retail sector. It has raised its target price from 121p to 135p. Goldman thinks Booker’s new trading level already reflects possible growth from its newly-purchased Makro business in the medium term.

SAVILLS
UBS has upgraded the property group from “neutral” to “buy” and kept its 12-month target price at 610p. The broker thinks Savills will benefit from a continued recovery in real estate worldwide and start to reverse its losses in continental Europe to break even in the region by 2014. However, a fresh downturn in Europe or new property policies in China could hinder Savills’ recovery, UBS adds.

BLINKX
Canaccord Genuity has a “buy” rating on the video search service and a target price of 125p. As online advertising growth continues to outpace more traditional channels, the broker sees Blinkx at the heart of this shift. The firm is trading at 1.8 times its expected 2014 earnings, a “meaningful discount” to firms such as Yahoo and Google.