BEST OF THE BROKERS

MONDI
Citi maintains its “buy” rating on the South African London-listed paper producer, but lowers its target price from 770p to 740p to reflect its revised earnings forecasts. The broker reduces its pre-tax earnings expectations by four to 18 per cent for 2011-12, due to the demerger of MPact, share consolidation and lower global growth expectation. Citi’s South African Rand target price remains unchanged at ZAR90 (790p).

SHIRE PHARMACEUTICAL
UBS reiterates its “buy” rating on the pharma group, and maintains its target price of 2,380p. The broker sees Shire’s attention deficit hyperactivity disorder (ADHD) franchise as outperforming the market, with both its Adderall and Vyvanse market share boosted in recent months, despite the launch of generic Concerta as a rival to the latter. Delays to rival Genzyme’s Fabrazyme could mean an upside of six to seven per cent to 2012-13 earnings.

FERRAGAMO
JPMorgan Cazenove rates the Italian luxury goods group as “neutral” with a target price of €12.70, after the company’s second quarter results call highlighted strong like-for-like trends and robust trading. The broker has raised its EBITDA margin forecasts for 2011 to 18 per cent from 17.2 per cent. Full-year profits before tax are also upgraded by 10.7 per cent to €141.5m, increasing the earnings-per-share forecast for the year by 5.4 per cent.