BEST OF THE BROKERS

BAE SYSTEMS
Goldman Sachs rates the defence group “sell” with a target price of 290p. The broker has cut its earnings per share forecast by two per cent for the year after an investor day. Goldman warns BAE is unlikely to start a share buyback until it has sorted a pensions dispute, with focus instead on M&A.

BRITISH AMERICAN TOBACCO
Nomura rates the group “buy” with a target price of £29.50. The broker has raised its earnings forecasts to one per cent ahead of consensus, following an investor day, and notes the firm’s confidence in reduced-harm tobacco products becoming commercially successful in the next decade.

NATIONAL EXPRESS
HSBC rates the transport group “overweight” and has raised its target price from 265p to 295p. The broker sees potential for bolt-on acquisitions and contract tenders, now a dispute with shareholders has been resolved. HSBC has raised earnings forecasts for National Express by seven per cent.