BEST OF THE BROKERS

COMPASS
JPMorgan rates the caterer “overweight” with a target price of 630p. The broker expects volume recovery to boost earnings next year, with around four per cent organic revenue growth. It adds that the next share price catalyst is the firm’s AGM in February, telling investors to look for recovery in business and industry sales.

MAN GROUP
RBS rates the hedge fund manager “sell” with a target price of 235p. The broker thinks more traditional asset managers such as Jupiter have better fund flow performance, and that Man could struggle with a maturity spike in 2012. It adds that the firm’s AHL fund could also suffer in the wake of a bumper year in 2008.

GEM DIAMONDS
Evolution Securities keeps its “add” recommendation on the miner with a target price of 227p. The broker notes the firm’s recent sale of two large diamonds for $23m, which it says will lift revenue for the year. However, it adds that operating costs at Gem’s Letseng mine are a challenge as production increases this year.