views

BEST OF THE BROKERS

BRITISH AIRWAYS
Citigroup said that the pension deficit agreement at British Airways (BA) appears positive for the share price. Citi has given the airline group a “buy” rating and said that the agreed recovery plan takes into account the £2bn increase in the value of its pension assets since the deficit valuation date as of the end of March 2009.

WHITBREAD
Bank of America Merrill Lynch (BoAML) argues that Costa Coffee gains few tangible benefits from being part of the Whitbread Group. BoAML reiterates its “buy” rating on Whitbread and said recent growth means Costa is getting to the point that it could be spun off with proceeds used to fund the hotels business.

VEDANTA
JP Morgan Cazenove calculates that Vedanta shares are trading closer in line with the net present value of its asset base prompting JP Morgan’s “overweight” rating and £40 price target. Earnings per share upgrades are driven by the tariffs secured in the power business, according to JP Morgan.