BEST OF THE BROKERS

LEGAL & GENERAL
Legal & General has confronted the UK life industry’s strategic challenges, transforming both its product range and cash flow, according to UBS. The broker maintains a “buy” recommendation and says that the fruits of this are now evident and the company has answered the existential questions that still vex some peers.

TATE & LYLE
Citigroup resumes coverage of Tate & Lyle with a “buy” recommendation after a period of restriction following the disposal of the food group’s sugars business. The broker says Tate & Lyle’s business is still sweet without the sugars and updates its forecasts to reflect the disposal of the business and gives the stock a £5.10 target price.

BT
JP Morgan Cazenove views the pension issues facing BT as a reducing concern.
The broker says that given the numbers involved, this is material for BT’s equity value, and underpins its “overweight” recommendation. The broker continues to view BT’s financial guidance as conservative.