BEST OF THE BROKERS

PIRELLI
Citi initiates coverage of the auto parts manufacturer as a “buy” at medium risk, and with a target price of €9 (£8.14). The brokers sees Pirelli as a good access point to the premium tyre space at a time when demand for replacement tyres has lessened in the NAFTA region (US, Canada and Mexico). The broker’s positive view on the premium tyre sector is based on a growing consumer focus on fuel efficiency and safety.

IMAGINATION TECHNOLOGIES
Goldman Sachs rates the chipmaker as a conviction “buy” with a target price of 630p, seeing fears around its participation within the Android market as overblown. The broker sees more sustainable market share, with Imagination in a prime position to profitably capitalise on high-growth end-market opportunities such as smartphones and tablets. Goldman forecasts a three-year compound annual revenue growth of 22 per cent.

BRITVIC
Nomura rates the company “buy” and has a target price of 391p. The broker expects the third quarter trading statement to show subdued growth in the face of tough competition, but with easier comparisons in the fourth quarter does not change its full-year estimates. Though it expects a continuing decline in Ireland, a cost-cutting programme should deliver €5m (£4.5m) mainly in the second quarter, which should underpin the full year.