BEST OF THE BROKERS

DIXONS
Seymour Pierce rates the retailer “buy” with a target price of 37p. The broker is looking for progress in the Nordic countries and the UK in the firm’s results on Thursday, with a first-half loss of £8m. It forecasts 37 per cent growth in 2011 pre-tax profit as the firm’s new strategy takes effect and new products boost sales.

AUTONOMY
Deutsche Bank rates the IT firm “hold” with a target price of £16. The broker believes the firm’s recent acquisitions can deliver incremental revenue, though it must invest in sales infrastructure to deliver real growth. Deutsche adds that it still has concerns about the maturity of the business model, given the large size of the company.

PARAGON GROUP
UBS rates the mortgage provider “buy” with an upgraded target price of 235p. The broker expects the firm to rapidly restart new lending thanks to improving demand and a new £200m warehouse facility. UBS has raised its pre-tax profit estimate for 2010 by 14 per cent to £69.8m, and by three and nine per cent for 2011 and 2012.