BEST OF THE BROKERS

ROYAL BANK OF SCOTLAND
Standard & Poor’s has upgraded the State-backed bank to “buy” from “hold”, but has trimmed its 12 month target price by 1p to 57p. The broker notes that RBS’s results last week confirmed the bank is on track to deliver profit next year, and expects a significant uplift in profitability over the next two years.

DECHRA
Brewin Dolphin rates the veterinary pharmaceutical group a “hold” with a 12 month target price of 500p. The broker has upgraded its revenue forecasts by five per cent this year and nine per cent next year on the back of the firm’s $42m acquisition of DermaPet in October, though it believes sales in the US are likely to miss targets.

UNILEVER
Evolution Securities rates the utility a “buy” with an upgraded target price of £21. The broker has upgraded its 2010 earnings before interest and tax by 0.15 per cent, resulting in a 1.4 per cent lift in earnings per share to €1.40. It adds that reassuring results for the third quarter could be a catalyst for re-rating the stock.