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BEST OF THE BROKERS

NATIONAL GRID
Goldman Sachs reiterates a “sell” rating on National Grid after the group’s £3.3bn rights issue. Goldman Sachs said that a $900m goodwill write off in the US rate base has led to a reduction in its price target. Goldman’s cum-rights price target is 544p.

ENEL
UBS upgrades Enel to “buy” for three reasons: dividend yield is at a 40 per cent premium to peers, earnings momentum is positive as consensus will have to increase near term numbers by six per cent and the stock is trading 40 per cent below mid cycle price-to-earnings ratio.

QINETIQ
Citigroup issue QinetiQ (QQ) with a “buy” recommendation and said it views 2010 to be the worst earnings year for the defence technology group. According to Citi, restructuring could be difficult and unlocking value in QQ might take time. However, Citi remains positive in the long term.