BEST OF THE BROKERS

FIRST GROUP
Morgan Stanley rates the transport group “equalweight” with a target price of 420p. The broker has raised its target price from 385p following a review of the transport sector, in which it has also boosted target prices for rivals Go-Ahead, National Express and Stagecoach. It predicts a modest outlook for the industry in 2011.

RANDGOLD RESOURCES
Goldman Sachs has a “sell” rating on the miner with a 12-month target price of £62.50. The broker has taken Randgold off its conviction sell list, but has maintained its rating due to uncertainty surrounding the Cote d’Ivoire where the firm has major operations. It adds that Randgold trades at around 2.9 times price to net asset value.

SPORTS DIRECT
Citigroup rates the retailer “buy” with a raised target price of 200p, up from 165p, to reflect better than expected first half results. The broker notes the firm’s recent news that wholesale gross profit is now expected to cover the cost base in its brands division, which drives a 1.5 per cent increase in Citi’s full-year EBITDA forecasts.