BEST OF THE BROKERS

BSKYB
Nomura rates the media group “buy” with a target price of £10.60. The broker expects strong half-year results when the firm reports on 27 January, with underlying earnings of £486m and 346,000 new HD customers. Nomura believes the government is likely to refer News Corp’s bid for Sky to the Competition Commission.

RSA
UBS rates the insurance group “buy” with an upgraded target price of 150p. The broker has cut its 2010 earnings estimate by 22 per cent following a profit warning last week, but still believes that the outlook for RSA is positive. It expects a combined ratio of 93 per cent in 2011, which is ahead of company guidance.

AMEC
Seymour Pierce has upgraded the engineering consultancy from “hold” to “add” with a new target price of £12.50. The broker expects record investment from major energy companies on the back of the rising price of oil, and that AMEC is well placed to benefit from this. It expects an EBITDA margin of nine per cent for the full year.