BEST OF THE BROKERS

BG GROUP
Goldman Sachs rates the natural gas company as a “buy” with a target price of 1,760p and adds it to its conviction list. The broker says that BG’s share price performance this year has been lacklustre but that the outlook across its business has improved. Liquid natural gas pricing is up 77 per cent year-to-date, and the resource base in Brazil has doubled in size. JP Morgan expects BG’s high-return, high-impact portfolio to underpin growth for the next decade.

TALKTALK
JP Morgan Cazenove rates the phone and broadband provider as “underweight” and reduces its target price to 126p from 138p, after it reported negative growth in broadband net adds for three consecutive quarters. The broker says that customer mix is more important than net adds, so is concerned that TalkTalk’s customer base is distilling towards the low end, losing potentially higher average revenue per user customers.

ABERDEEN ASSET MANAGEMENT
Citi rates the asset manager as a “buy” with a target price of 220p, slightly reduced from its previous target of 230p. The broker forecasts 35 per cent growth in earning per share for full-year 2011, but only 2.5 per cent for 2012, but says that despite a challenging market backdrop, the group’s fund flows and scope for cost management are reassuring. Aberdeen has indicated no change to the c£200m non-compensation costs guidance it issued at results.