BEST OF THE BROKERS

BURBERRY
Nomura rates the luxury retailer “neutral” with a target price of £12. The broker expects the firm’s half-year trading update on 19 April to show a 14 per cent rise in like-for-like retail sales, which will make up 70 per cent of overall sales. While Nomura expects another vintage year from Burberry, it has kept a neutral rating because it belives that strong growth across the world is already assumed in the share price.

INTERNATIONAL AIRLINES GROUP
Credit Suisse rates the British Airways and Iberia parent company “overweight” with a target price of 340p. The broker was disappointed by Iberia’s traffic growth, up 2.7 per cent, but thinks the next two months look promising as capacity growth progresses. Credit Suisse also points out that BA’s 11.9 per cent year-on-year traffic growth was bolstered by poor figures caused by strike action last March.

BARCLAYS
Canaccord Genuity has upgraded the bank to “buy” with a target price of 330p. The broker thinks the Independent Commission on Banking report due next Monday will prove a positive catalyst for Barclays shares, as regulatory uncertainty is reduced. The broker also thinks the bank can cope with any enforced separation or ringfencing of retail banking operations, despite an estimated £1bn gross hit, by offloading low-return assets.