BEST OF THE BROKERS

EASYJET

EasyJet’s new brand licence is positive for shareholders, believes Citigroup, which gives the stock a “buy” rating. The broker says the agreement ends the legal dispute between easyJet and easyGroup, addresses the governance issues and the ancillary activities are no longer confined to 25 per cent of revenue, all positive for investors.

AXA

Nomura estimates that AXA can pay its insurance interest rate guarantees without incurring losses if rates remain low. The broker maintains a “buy” rating for AXA and highlights the existence of €9.7bn of surplus policyholder capital in AXA's capital structure, which could be used to absorb losses caused by low interest rates.

PETROFAC

Goldman Sachs maintains its 12-month sum-of-the-parts-based price target of 1812p for Petrofac and rates the stock “neutral”. The broker says the key downside risks include a lower crude price and any execution problems in the delivery of large contracts. Upside risks include further significant contract awards.