BEST OF THE BROKERS

HOMESERVE
Numis Securities has raised its recommendation on the household services firm from “hold” to “buy” with a target price of 545p. The broker predicts strong international growth alongside modest gains in the UK to contribute to profits doubling over five years. Numis believes that the firm requires very little capital to grow the business.

FLYBE
Investec rates the airline a “buy” with an unchanged 438p target price. Despite the impact of severe weather on Flybe’s bottom line, the broker is impressed by the firm’s underlying growth and yield. It adds that Flybe has one of the best fuel hedging positions in the industry, and can grow through tie-ins with other airlines.

SHIRE PHARMACEUTICALS
RBS maintains the drugs firm a “sell” but has raised its target price by £1 to £13.75. The broker believes that despite Shire’s solid fourth-quarter results last week, the market continues to underestimate the magnitude of risk from generic products. RBS is also concerned about Shire’s research division delivering fewer new drugs than expected.