BEST OF THE BROKERS

CARPHONE WAREHOUSE
RBS initiates coverage with a “sell” rating and a target price of 180p. The broker believes the company’s mature core retail operation depends too much on competing in the crowded smartphone market. RBS predicts profits of more than ten per cent below consensus estimates, with earnings per share in 2012 forecast at 13.5p.

SONGBIRD
Evolution Securities rates the property group a “buy” with a target price of 160p. The broker believes near-term capital growth will be limited, but a strong development pipeline offers medium-term asset value growth. Evo says it expects the firm to minimise development risk by securing pre-lets before commencing construction.

WOLSELEY
Seymour Pierce has downgraded the support services group to “underperform” with a £13.50 target price. The broker believes a further restructuring is unlikely in the short-term. Instead, it says, 2011 will be shaped by the depressed state of the economy and consumer confidence, prompting a downgrade.