BEST OF THE BROKERS

BG GROUP
Nomura rates the integrated natural gas company as a “buy” with a target price of 1750p, ahead of third quarter results on 25 October that could bring downward market revisions on production guidance and earnings per share for 2012. The broker says it is more positive on Brazil after the appointment of Fabio Barbosa as finance chief, and sees notable potential in the company’s exploration projects in both Norway and China.

MECOM
JP Morgan rates the pan-European newspaper publisher as “overweight” and reduces its target price from 338p to 311p after the company released its three-month trading statement to 30 September. The broker expects current consensus 2011/12 earning per share estimates of €0.48/€0.52 to decrease to €0.44/€0.47 respectively, but says the market is missing Mecom’s strong cash flow generation.

MOBISTAR
Citi rates the Belgian telecoms group as a “sell” with a target price of €37.10, and lowers its expectations for 2012 and 2013 earning by two to three per cent to reflect increased competition in the Belgian mobile and TV markets. The broker sees easier comparisons for the fourth quarter and forecasts a 35 per cent margin on service revenues. Citi says Mobistar has scope to remain resilient despite an uncertain macro outlook for Belgium over the next year.