BEST OF THE BROKERS

NATIONAL GRID
Standard & Poor’s has downgraded the utility to “sell” from “hold”, with a target price of 516p. The broker notes National Grid’s 10.7 per cent share price rise in the last year, resulting in a 12.4 per cent outperformance of the sector, which could lead to profit-taking soon. Planned capital expenditure is also on the radar.

UBS
Credit Suisse has cut its rating to “neutral” from “outperform” with a reduced target price of €20.50. The broker has also slashed its forecasts for 2010, 11 and 12, thanks mainly to the firm’s investment banking division. Credit Suisse says the fixed income trading revenue line is significantly more volatile than expected.

MORRISONS
Goldman Sachs has downgraded the supermarket to “neutral” from “buy” with a target price of 350p. The broker believes the firm’s growth and returns opportunity is represented in the current price. While GS believes the trial of online and metro stores in 2011 may provide growth, a larger factor is the uncertain state of the UK economy.