BEST OF THE BROKERS

INTERTEK
JP Morgan Cazenove rates the product tester “overweight” with a target price of £21.30, up from a previous target of £20.50. The broker has also upgraded its 2011 earnings estimates by six per cent, arguing that the firm has one of the best opportunities in the testing sector. JP Morgan believes that the firm’s acquisition of Moody represents an earnings accretive deal and a strategic step forward with chances for cross-selling.

PETROFAC
Deutsche Bank rates the energy services firm “hold” with a target price of £14.70. The broker still harbours worries about the firm’s engineering and construction business following results on Monday, with continued political unrest in Petrofac’s markets in the Middle East. Deutsche Bank also thinks that intense competition from Asian contractors will substantially slow the firm’s contract pipeline.

SCHRODERS
Evolution Securities rates the asset manager “neutral” with a target price of £18.60. The broker expects the firm to report profits close to their 2007 peak tomorrow, with forecast net inflows of £28.1bn for the full-year. It also expects funds under management to have grown 27 per cent during the year to £188.5bn. Evo views Schroders as the best conventional asset manager, but sees limited scope for upgrades to forecasts.