Best of the Brokers for 4 June 2013

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DARTY
Cantor Fitzgerald downgrades the electronics retailer to “sell” from “hold” and maintains its target price at 60p ahead of its full year earnings report due out later this month. The broker says difficult times in the firm’s core markets are likely to continue with a tough consumer backdrop and a structural shift to online retailing.

FULLER, SMITH & TURNER
Ahead of the brewer’s final results on Friday, Numis Securities reiterates its “add” rating and a target price of 950p. The broker thinks the firm’s pre-tax profits have increased by four per cent to £31.6m. Numis sees potential upside for its 2014 full-year forecast, which assumes a one per cent rise in managed like-for-like sales, flat margins, and only two pub acquisitions.

SPORTECH
Peel Hunt maintains its “buy” rating on the gaming group with a target price of 125p. Last week’s court victory regarding a VAT refund could lead to the firm eliminating its debts and allow for future strategic acquisitions and dividend payments of around 2p per share, the broker believes. HM Revenue & Customs has until 1 July to appeal directly to the Upper-tier Tax Tribunal.