BEST OF THE BROKERS

CREDIT AGRICOLE
Deutsche Bank rates the bank “hold” with a target price of €11.70 (£10.23), down from €14. The broker expects net income of €350m at its quarterly results on Thursday, a big drop compared with earlier this year due to an €850m charge linked to its Greek business. While Credit Agricole is one of the cheaper European banking stocks, Deutsche thinks there is no positive catalyst on the horizon, particularly given its exposure to the peripheral Eurozone.

LADBROKES
Evolution Securities rates the betting shop chain “buy” with a target price of 121p. The broker thinks Ladbrokes’ recent 22 per cent share price fall fails to reflect the resilience of retail betting firms generally and the firm’s low leverage and robust free cash flow. Evo is also impressed by the group’s online overhaul. An acquisition of Sportingbet would be a good move, the broker adds – providing the price is sensible.

TRAVIS PERKINS
Goldman Sachs has downgraded the construction group from “neutral” to “sell” and has a 12-month target price of 780p. The broker reckons Travis Perkins is likely to underperform the business services sector, given weak UK construction and household spending and company forecasts of weak volumes throughout this year. Goldman prefers rival Rexel, which has a more attractive exposure to emerging markets.