BEST OF THE BROKERS

BT
UBS has upgraded the telecommunications company to a “buy” and has raised its target price to 230p. The broker has raised its earnings per share forecast ahead of consensus, and notes the firm’s positive earnings growth, which contrasts with mobile-driven earnings cuts for other telecoms firms. UBS is also upbeat about BT’s pensions deficit, forecasting a more optimistic dividend outlook from 2012.

SABMILLER
Citi rates the brewer “buy” and has a target price of £27. The broker sees potential for bolt-on acquisitions but unless the firm makes a significant acquisition in the next year, it thinks that buybacks could be on the agenda at an annual rate of $1.5bn (£722m). Citi adds that SABMiller is unlikely to be interested in buying Foster’s at a premium to its current price, leaving earnings per share growth to continue at a rate in the mid-teens.

GO-AHEAD GROUP
Morgan Stanley has upgraded the transport provider from “underweight” to “equalweight” on the back of improved trading, and has raised its target price by 290p to 1535p. The broker thinks the current share price reflects strong passenger growth, now forecast at 1.5 per cent a year, and believes Go-Ahead can work to offset lower state subsidies for bus routes over the next few years.