BEST OF THE BROKERS

OCADO
UBS has downgraded the online grocer to “neutral” from “buy” with an increased target price of 197p, following share price gains and an improvement in valuations among Ocado’s peers such as Amazon and Asos. It adds that the trading statement due on 10 January will shed light on the firm’s progress since floating.

BETFAIR
Morgan Stanley rates the betting firm “equal-weight” with a target price of £14. The broker says it was surprised by the one per cent growth in gaming revenue in the second quarter, but adds that Betfair has a history of short-term volatility. It expects to see medium-term growth of 12 per cent, but has trimmed EBITDA forecasts

BRITISH AIRWAYS
Deutsche Bank rates the airline “buy” with a target price of 272.5p. The broker sees shares in the new BA/Iberia tie-in, which list on 24 January, as a good play on US recovery and improving premium demand. However, it holds concerns about uncertainty in the new company’s strategy, in particular its weak presence in Asia.