RBS rates the tour operator as a “buy” with a target price of 300p, and says market misconceptions about the sector and general market volatility have creating a buying opportunity. The brokers believe package holidays will survive the competitive threat of DIY holidays, and says Thomas Cook’s struggles have had a unwarranted drag on its stock price. Instead, the broker says TUI should benefit from its rival’s reduction of capacity in the UK market.

Citi initiates coverage of the phosphate fertiliser producer with a “buy/high risk” rating and a target price of $21. The broker foresees solid demand from the fertiliser market for at least 2-3 years, with average annual increases in demand up four per cent compared to a 2.5 per cent yearly rise in global capacity. Citi says PhosAgro has long-term access to the EU market, and highlights its impressive pre-tax margin of 34.4 per cent.

JP Morgan upgrades the beverage group to “neutral” from “underweight” and ups its target price to €5.50 following its first-half results earlier this month. The broker had seen Campari as expensive in the sector, but changes its rating after spirits sales growth accelarated to low double digits. It upgrades its earnings per share estimates by one per cent for 2011 and six per cent for 2012, and sees 14 per cent earnings growth on average to 2013.