BEST OF THE BROKERS

RECKITT BENCKISER
Goldman Sachs rates the consumer goods producer “buy” but has taken the firm off its “conviction buy” list, and has cut its 12-month target price by 160p to £41.70. The broker thinks the firm contains an increased execution risk following a change in management, though recent quarterly results were encouraging. Goldman is still confident that Reckitt will outperform the wider consumer products market over the next year.

BG GROUP
Credit Suisse rates the oil explorer “outperform” and has cut its target price by 80p to £17.10. The broker was disappointed by the firm’s results on Tuesday and has lowered its 2011 estimates by eight per cent to reflect lower volume guidance and higher UK taxation. BG Group remains the broker’s core holding for long-term energy investors, though it now expects a pause in the firm’s share price.

MARKS & SPENCER
JP Morgan Cazenove has upgraded the retailer from “underweight” to “overweight” and has hiked its target price by 150p to 460p. The broker is impressed by M&S’s proactive pricing strategy, and thinks its outperformance in the last year has until now been overshadowed by worries over inflation. The current share price rise has been in line with peers, not yet reflecting the self-propelled recovery story at the firm, JP Morgan adds.