BEST OF THE BROKERS

PERNOD RICARD
Standard & Poor’s rates the drinks firm a “buy” with a target price of €72, adding the company’s recent results proved its theory of an improving trend in underlying sales. The broker has raised its earnings per share forecast for 2010 to reflect currency benefits, and said sales in emerging markets are performing well.

INTERTEK
Morgan Stanley downgrades Intertek to “underweight” citing its “full” valuation. Believes earnings growth is unlikely to return to its previous highs given the muted economic recovery and believes its current price to earnings ratio is unattractive. Suggests Aggreko, which it rates “buy” as a better bet.

VIVENDI
Execution Noble rates the media giant a “hold” with a fair value price of €20. The broker says the main obstacle to upgrading the shares is the lacklustre growth of cash-flow, which is set to decline to €1.8bn this year. However, it has raised its target price from €19.50 to factor in lower prospective liability in the firm’s US class action lawsuit.