BEST OF THE BROKERS

SCOR
UBS has upgraded the reinsurer to “buy” and has raised its target price to €23 from €21 after its full-year results earlier this month hinted at strong growth potential. The broker predicts 9.5 per cent compound growth in earnings per share, well above predictions for others in its peer group. SCOR has already said that its losses from the Queensland floods, Cyclone Yasi, and Christchurch and Japanese earthquakes should not exceed €385m.

REGUS
Citigroup maintains its “hold” rating on the office space provider, but ups its target price from 80p to 100p to reflect certainty around its trading outlook following Monday’s results. The broker also lifts its full-year earnings per share prediction 14 per cent, by increasing its occupancy forecast by two per cent. With shares discounting around 10 per cent to
EBITA margins, Citigroup sees the share price risks as well balanced.

AIR ARABIA
Morgan Stanley has downgraded the Middle East’s budget airline to “underweight” and cut its target price from AED (17p) to AED0.68 after analysing its fuel expense update and regional competitiveness. The broker sees risk to its consensus earnings before tax of AED229m for 2011, which it thinks have not been updated for oil price movements. However, the absolute downside is limited by fleet value and a relatively robust balance sheet.