BEST OF THE BROKERS

MITIE Group
RBS says Mitie’s interim results were four per cent higher than expectations, but that the next six months are critical, since new contracts would justify a substantial step up in Mitie’s bid costs. RBS’ reduced forecast and target price assumes that these contracts are not secured. Wins would catalyse upgrades and a rerating, RBS says. RBS reiterates its “buy” rating but reduces its target price from 290p to 270p.

MITIE Group
RBS says Mitie’s interim results were four per cent higher than expectations, but that the next six months are critical, since new contracts would justify a substantial step up in Mitie’s bid costs. RBS’ reduced forecast and target price assumes that these contracts are not secured. Wins would catalyse upgrades and a rerating, RBS says. RBS reiterates its “buy” rating but reduces its target price from 290p to 270p.

PROVIDENT FINANCIAL
Evolution Securities expects Provident’s investor day to build on the analysis of the impact on home credit of the recent Comprehensive Spending Review. Colour may also be given on how the company has traded over the last month, it believes. However, Evolution doesn’t expect anything specific on funding. “Provident remains a cheap, lower beta play,”?it says. Reiterates its “buy” rating.