BEST OF THE BROKERS

ANGLO AMERICAN
Morgan Stanley downgrades Anglo American to “equalweight” from “overweight” and lowers its price target to 3,208p. Believes all the positives have been priced into the shares, which are trading at at a 10 to 15 per cent premium to the sector. Believes that investors should switch into Xstrata which it rates as “overweight”.

INTERNATIONAL POWER
UBS upgrades International Power to “Buy” post its deal with GDF Suez which it sees as a “win-win”. Says shareholders will get immediate share price upside as well as improved long-term growth. Sees little risk of the deal failing, and says IPR is now well positioned for future growth. Ups target to 410p from 320p.

BARCLAYS
Seymour Pierce reiterates its “hold” rating saying it is concerned that reports of BarCap cutting jobs indicates that revenue in the investment bank is disappointing. Notes that top line income at BarCap was down 32 per cent year-on-year in the first half. Advises caution, noting investment banking appears to be losing momentum.