Morgan Stanley rates the fund manager “overweight” and has lifted its target price to 260p. The broker has also raised its earnings per share forecast by four per cent on higher margin equity inflows, and views the shares as attractive due to strong global equity reach and reduced drag from fixed income.
Espirito Santo rates the dispute financier “buy” with a target price of 137p. While the broker was surprised by the departure of the Burford’s chairman, it believes the firm has an advantage over others thanks to its $200m cash pile. It expects an average return on investment of 27 per cent, providing the firm continues to invest.
Numis rates the leisure group “add” with a target price of 525p. The broker expects the firm to report in-line or above-forecast sales on Monday, building on a 17 per cent rise in pre-tax profit in the first half of the financial year. Numis predicts a pre-tax profit of £136m for 2011, which is slightly below consensus estimates.