BEST OF THE BROKERS

BARCLAYS
Royal Bank of Scotland (RBS) expects that negative operating trends will reverse and a ‘new world’ Barclays is set to deliver. The broker reiterates a “buy” rating for the bank with a 410p price target. Gradual profit and loss momentum, fluidity and execution of group strategy are key to a sustained re-rating, according to the broker.

TULLOW OIL
Killik & Co has initiated coverage of Tullow Oil with a “buy” recommendation. The broker says, so far this year, Tullow’s stock has underperformed the sector in spite of the robust oil price and positive exploration newsflow. The broker believes the recent uncertainty emanating from Uganda provides buying opportunity.

DIAGEO
Diageo has started the year strongly in Asia, says Evolution Securities, which reiterates a “buy” stance for the group. The broker says Diageo is gaining share in most markets, and its Chinese business is strong. With the first quarter trading likely to be strong, earnings risks are set to skew to the upside, says the broker.