BEST OF THE BROKERS

BETFAIR
JP Morgan has started covering the online gambling group with a “neutral” rating and a target price of £10.24. The broker points out the regulatory risks of the firm, warning that 27 per cent of its revenues are generated in countries where the firm is vulnerable to changes in regulation. But it believes that this is offset by excellent cross-selling opportunities from licensed sports and potential for a tax-saving move offshore.

CAPITAL SHOPPING CENTRES
UBS rates the retail property owner “neutral” with a 12-month target price of 395p. The broker estimates that CSC’s recent purchase of the Trafford Centre could add seven per cent to earnings per share, based on last year’s earnings, though the share dilution could drag on EPS momentum in the medium term. UBS also warns that the share price may prove weak now that the firm is less susceptible to takeover approaches.

VODAFONE
Goldman Sachs rates the telecoms group “neutral” with a target price of 183p. The broker expects the firm to report 2.9 per cent year-on-year organic growth when it reports tomorrow, with total group revenues of £11.7bn. It believes the firm is unlikely to return to sustainable growth in Europe, however, or maintain predictable dividend payments from its wireless partner Verizon.