Best of the Brokers for 3 May 2013

PLAYTECH
JP Morgan Cazenove has started covering the gaming software group with an “overweight” rating and price target of 690p. The broker thinks its forecasts of high single digit revenue growth can be easily beaten if Playtech makes acquisitions or wins new contracts. JP Morgan also sees Playtech as the emerging go-to software provider.

SAINSBURY
UBS rates the supermarket “buy” and has raised its target price from 400p to 425p ahead of the firm’s preliminary results next Wednesday. The broker expects Sainsbury to post pre-tax profits of £749m, up 5.2 per cent on last year as its rivals suffer falling earnings. UBS also thinks the supermarket’s returns will grow again next year.

HSBC
Nomura rates the bank a “buy” and has kept its target price at 900p ahead of first quarter results next Tuesday. The broker is below consensus estimates with its forecast of 4.5 per cent revenue growth but expects a larger dividend at $0.54 for the year. Nomura has predicted pre-tax profits of $6.9bn.