BEST OF THE BROKERS

ANGLO AMERICAN
Citi rates the mining group as “buy/medium risk” with a target price of £35, saying that pressure put on its shares by global economic concerns have left it attracitvely priced. The broker says near-term production growth should drive cash flow over the next two years. However, it has also reduced its earnings forecasts by up to one per cent to cover costs.

DAIRY CREST
UBS rates the UK’s biggest milk producer as “neutral” and lowers its target price to 355p from 400p, to reflect the tougher economic outlook. Yesterday’s half year figures were in line with expectations, and management remained confident of delivering 2012 profits in line, despite upward pressure on milk costs. The broker’s price target is based on a 6x EV/Ebitda multiple.

TESCO
Nomura rates the supermarket as a “buy” with a target price of 500p, expecting Tesco to post first-half profits of £1.8bn, representing seven per cent growth excluding Japan. Without the Easter and royal wedding boost, the broker expects second quarter UK sales to be more subdued, but still expects trading profits to grow in line. It also expects flat Tesco Bank profits for the full year to February 2012.