BEST OF THE BROKERS

TATE AND LYLE
Ahead of first half results next Thursday, Citi rates the sweetener company as “neutral” with a target price of £6.35. The broker forecasts revenues up three per cent to £1.4bn, operating profit up 8.3 per cent to £181m and earnings per share of 27.3p, a lift of 16 per cent. Citi expects Tate and Lyle to be able to pass on the increase in corn costs in order to protect profits, but does not expect any commentary on pricing until after completion.

TELENOR
After consensus-beating third quarter results earlier this week, Nomura rates the Norwegian telecoms group as a “buy” with a target price of NOK120. The broker says a strong performance in Asia drives material upgrades, and increases its margin targets for 2011 to 31.4 per cent from 31.1 per cent. The fact that Telenor’s chief executive implied progress had been made toward an agreement with Vimpelcom should also improve sentiment, it adds.

SAP
After the business management software firm reduced losses and raised revenues, Morgan Stanley rates the company as “overweight” with a target price of €52. Co-chief executive Bill McDermott has cited the release of SAP’s High-Performance Analytic Appliance as an “adrenaline shot”, and the broker says strong pipelines give upside to a solid core, while the double-digit maintenance growth gives downside protection.