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BEST OF THE BROKERS

HAYS
Numis said that as the public sector comes into the spotlight it remains concerned that Hays has not yet seen the end of the earnings downgrade cycle. Its 35 per cent net fee exposure to this area in the UK is vulnerable to cuts, creating at best a drag on recovery earnings. Numis gives Hays a “sell” rating.

THOMAS COOK GROUP
Morgan Stanley said that while uncertainties remain over current trading against the backdrop of largely fixed summer capacity, it thinks Thomas Cook can generate its forecasts this year. Morgan Stanley said it cannot justify being “underweight” and moves to “equal weight”. But it still prefers TUI Travel.

MAN GROUP
Man Group’s 2010 results like feel a long time ago,said Bank of America Merrill Lynch (BoAML), which has used this opportunity to “rightsize” its 2011-13 estimates, largely due to cost management issue. BoAML said it has put through noticeable cuts to Man Group’s estimates without changing much and retain a “buy” rating.