Best of the Brokers for 3 July 2013

Canaccord Genuity reduces its target price for the petroleum company by almost nine per cent to 1,050p and maintains a “hold” rating ahead of a trading statement. Despite good exploration potential and an experienced team, the broker believes the firm’s valuation is stretched.

Espirito Santo initiates coverage of the engineer with a “buy” recommendation and a 3,050p target price. The broker said the firm’s market share and sector-leading returns are its most attractive features and thinks the firm can deliver enough growth to justify its premium.

HSBC upgrades the luxury retailer to “overweight” from “neutral” and increases its target price to 1,750p from 1,530p. The broker said the group’s strategic initiatives are delivering results and it has better growth visibility as shares cease to trade at a premium to the sector.