BEST OF THE BROKERS

BSKYB
Nomura rates the media group “buy” with a target price of 828p. The broker hopes the firm’s results next month will show resilience in the face of an almost unprecedented UK consumer slowdown, following strong performance in the last two years. Nomura expects an 8.7 per cent rise in revenue to £1.64bn for the quarter, with earnings per share up 15 per cent year-on-year to 8.7p.

BG GROUP
JP Morgan Cazenove rates the gas explorer “overweight” with a target price of £16. The broker expects liquefied natural gas (LNG) supplies to command a premium price thanks to the unrest in the Middle East and sudden demand from Japan, which the market has not appreciated due to the lack of public spot pricing for the fuel, the broker says. JPM thinks BG Group is best placed to play the potentially drastic shift in prices.

BNP PARIBAS
RBS rates the French bank “sell” with a target price of €50 (£44). The broker thinks the bank, alongside Societe Generale, will be affected by rising short-term interest rates, given its big exposure to a flattening yield curve within Europe. RBS also warns that the new Basel III liquidity rules would hit French banks the hardest if implemented in their current form – a real risk, the broker adds – because of their current asset structure.