Best of the Brokers for 28 May 2013

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Panmure Gordon has upgraded the travel group to “buy” from “sell” and increased its target price to 164p from 54p. The broker raised its fiscal year forecasts for the next three years by around 70 per cent as the firm begins its restructuring project revealed earlier this month. Panmure also said the firm’s balance sheet recapitalication and cash growth could allow for a dividend from 2015 and complete debt repayment by 2016.

Peel Hunt has upgraded the online clothing retailer to “buy” from “hold” with a target price of 4,500p. The broker believes the firm will see strong third quarter results driven primarily by rising UK sales growth. Peel Hunt also upgraded its pre-tax profit forecast for 2015, the year by which it expects the costs of an expansion into China to be absorbed, by 10 per cent to £90m.

Investec maintains a “buy” rating on the owner of the Daily Mail newspaper and upgrades its target price to 841p from 780p. The firm released positive first half results last week, and the broker expects a good performance to continue. Investec sees value in the firm’s portfolio refocus and potential upside on growth hotspots.