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BEST OF THE BROKERS

ENDESA
UBS has upgraded Endesa to “buy” from “neutral” citing three reasons for the move. It says re-gearing could imply 60 per cent total return over two years, the possibility of a minority buyout provides support to the stock, and rising power prices give it positive earnings momentum.

BASF
Nomura gives BASF a “buy” rating and said the group offers the most attractive valuation of all of its Western European chemical stocks according to its valuation methodology. Having used the same approach for many years, Nomura said that it does not recall seeing BASF in this position before.

STAGECOACH
Morgan Stanley said that it likes Stagecoach due to the transport group’s exposure to UK rail, where recovering passenger volumes and extra cost savings delivered further upside surprise in the 2010 results. Morgan Stanley gives Stagecoach an “overweight” rating.