BEST OF THE BROKERS

WM MORRISONS
Evolution Securities is backing the supermarket retailer ahead of its full-year results on Thursday this week. It sees “little room for any major positive surprise” in the numbers, as the UK consumer environment remains subdued and the food retailers remain under pressure. Yet it is upbeat on possible news of a share buyback plan and further strategy updates from the chain and backs it to succeed.

WPP GROUP
The advertising and marketing firm’s results on Friday showed earnings were in line with expectations, although analysis by Killik & Co advises investors to “pause for breath”. It says WPP offers a “liquid, albeit not that operationally geared, means of gaining exposure to a recovery in economic growth”. Yet it also says the firm’s shares have enjoyed a strong run over the last six months, pushing the price further above earnings.

LOOKERS
Panmure Gordon looks ahead to the firm’s final results, which are out on Wednesday this week. It rates the firm “buy” with a target price of 80p on the back of a “strong year of progress” and “good levels of debt reduction” at the car seller. Panmure Gordon also believes the year ahead will be good for the company with the new car market having fared better than anticipated so far this year, which could further boost Lookers.