BEST OF THE BROKERS

WELLSTREAM
Citigroup has downgraded its rating of Wellstream from “buy/high risk” to “hold/high risk” as the premium seems largely priced in and there is the potential for a takeover deal to not go through. The broker prefers to wait and see on what might happen with the British-based oil services company.

DEBENHAMS
Goldman Sachs has updated estimates for Debenhams. The broker hasn’t changed its “neutral” rating for the retailer but has moved its price target from 92.5p to 89.2p. The broker estimates that risks to the price target include weaker sales, higher imported costs and stronger competitive pressures in UK retail.

IMPERIAL TOBACCO
After Imperial Tobacco’s pre-close statement, UBS remains happy to be at the low end of the consensus range since cigarette volumes appear weaker than expected and revenue appears to be below the broker’s growth expectations. The broker maintain a “neutral” rating and said management need to outline an organic growth strategy.