BEST OF THE BROKERS

EASYJET
Morgan Stanley rates the airline “equal-weight” with a target price of 510p. The broker hopes to see evidence of the firm’s recent operational shake-up for the rest of the financial year, starting with an interim management statement on 20 January. It believes EasyJet can double its earnings per share in 2011 simply by removing one-off costs.

ROLLS ROYCE
Citigroup rates the engineering firm “buy” with an upgraded target price of 760p following recent share underperformance. The broker has raised its earnings per share estimates, excluding the effect of the Trent 900 engine problems, to reflect a faster-than-expected recovery in civil aerospace. It expects 2012 earnings per share of 54.14p.

LADBROKES
Goldman Sachs rates the gambling group “sell” with a six-month target price of 125p. The broker believes that a reported transaction with 888 would increase Ladbrokes’ scale online and would broaden its geographical exposure, but would not deliver an improvement in its key sportsbook sales. It remains bearish on the firm in light of the uncertain outlook for UK retail.