Best of the Brokers for 5 August 2013

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ROTORK
Espirito Santo tells investors to “buy” shares in the manufacturing group and has a fair value of 3,050p ahead of first-half results tomorrow. The broker thinks Rotork’s shares have unfairly fallen behind the rest of the industrial sector in the year so far, given its sector-leading rate of returns and rising market share.

INTERCONTINENTAL HOTELS GROUP
Panmure Gordon has a “hold” rating and 1,920p target price ahead of the hotels group’s interim results tomorrow. The broker expects to see 4.5 per cent growth in revenues per available room, partially offset by asset sales and slower than earlier in the year in Asia.

TALKTALK
Morgan Stanley has an “overweight” rating on the phone and broadband provider and a price target of 280p. The broker sees TalkTalk’s recent price hikes as a sign of pressure on the cost of supplying broadband. Morgan Stanley does not see the fierce competition between BT and Sky Sports as a big threat to the company.