BEST OF THE BROKERS

ALLIANZ
Morgan Stanley reiterates its “overweight” rating on the insurance group with a target price of €117.20, and says it remains the broker’s preferred large cap insurance play. Despite Eurozone sovereign debt risk – Allianz chose to fully write down all of its Greek liabilities to market value – the broker still sees its financial strength and flexibility as a major attraction, and says any risks are manageable for the group.

GLAXOSMITHKLINE
JPMorgan rates the European healthcare giant as “neutral” and ups its target price from 1,280p to 1,350p, having rebuilt its analysis of the company to better reflect aspects of its new, diversified business model. The broker’s assessment is partly based on incoming chief financial officer Simon Dingemans’ outline for the firm, designed to drive better financial returns and give investors better access to up-to-date progress reports.

NOMOS BANK
Goldman Sachs initiates coverage of Nomos with a “buy” rating and a target price of $24.50, and says the bank’s current valuation does not reflect its attractive growth profile, superior returns and stronger through-the-cycle loan quality compared to its peers. The bank’s trough return on equity (ROE) was 12 per cent in 2009, much higher than its peers, and its 2011 annualised ROE is already 20 per cent.