BEST OF THE BROKERS

XCHANGING
UBS rates the IT company “neutral” and has cut its target price from 85p to 55p. The broker thinks the firm has started to address the accounting issues that caused a spate of profit warnings earlier in the year, helping to reassure the market, but believes Xchanging needs to further prove its customer retention and financial targets for its ongoing restructuring. UBS has raised its medium to long term forecasts by around 10 per cent

KINGFISHER
Goldman Sachs rates the retail group “buy” and has raised its target price from 319p to 330p. Goldman has raised its estimates slightly following full-year results, and now expects earnings per share of 31.15p in the next financial year – a rise of 2.9 per cent. However, it sees the key risks to the firm’s performance as a weakening in the UK market, increased working capital and worse trading in China.

MOUCHEL
RBS rates the construction group “hold” and has cut its target price from 100p to 90p. The broker has set out three key challenges for Mouchel this year: stabilising revenues, restructuring to improve margins and generating cash to cut debt. RBS thinks Mouchel can overcome the short-term uncertainty in the public sector pipeline to prosper in the long-term, and expects to see a considerable positive re-rating if management delivers.