BEST OF THE BROKERS

RUSHYDRO
Goldman Sachs has upgraded the hydroelectricity company to “buy”, seeing its underperformance in the year to date as an opportunity to invest. The broker thinks the market has overreacted to the news flow on regulatory pressure on electricity tariffs and the risks associated with M&A activity, and expects an 18 per cent increase in earnings before tax in 2011 compared to 2010. Its 12-month price target increases 24 per cent to $7.80 (£4.73).

RECKITT BENCKISER
Nomura rates the consumer goods giant “buy” with a target price of 3800p following its first quarter results last week, which saw core sales growth broadly in line with expectations and core earnings before tax slightly ahead of expectations. Most importantly, the brokers sees the company’s health and personal care brands having returned to good growth and developing market margins back in positive trend, having caused concern last year.

SHIRE PHARMACEUTICALS
Credit Suisse rates the pharma giant as “overweight” with a target price of 1900p ahead of first quarter results due out this Thursday. The broker expects an unusually strong performance from key product Adderall XR, driven by a sharp increase in volumes over the quarter. Attention deficit hyperactivity disorder (ADHD) treatment Vyvanse should also benefit with an increase of 16 per cent year on year, as ADHD drugs continue to outperform.