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BEST OF THE BROKERS

MICHELIN
Royal Bank of Scotland (RBS) initiates a “buy” rating for Michelin and says that despite rising material prices, it sees room for Michelin to profit from early implementation of price increases, stronger replacement business momentum, and better underlying earnings due to the cost cuts in 2009.

GREENE KING
Seymour Pierce has given Greene King a “buy” recommendation after the group acquired four pub restaurants from Punch Taverns for £5.3m. According to Seymour Pierce, Greene King advises that the underlying trading levels of these units will improve post acquisition, and is confident the group will succeed.

FERROVIAL
Citigroup gives BAA owner Ferrovial a “buy” rating. Citi said that Heathrow recorded a 3.1 per cent year on year decrease in May due to the Icelandic volcanic ash cloud disruption and by the BA’s cabin crew strike. If adjusted for these disruptions, BAA estimates 2.8 per cent traffic growth at Heathrow.