BEST OF THE BROKERS

INVESTEC
Goldman Sachs rates Investec “buy” with a 533p target price as it believes the wealth management group has been unjustifiably hurt by risk aversion, despite shifting its business model towards asset and wealth management, which give it more stable income streams and now constitute about half its revenues. About 70 per cent of its profits come out of its South African business, which is more resilient than the UK.

EUROMONEY
UBS rates the publishing group “buy” with a 780p target price ahead of its full-year results next week. Euromoney expects about a ten per cent rise in revenues and pre-tax profit of not less than £90m. The company has said revenues from subscriptions and delegate fees have been robust but advertising and sponsorship have been hit by market volatility. UBS believes it looks cheap based on medium-term growth forecasts.

WM MORRISON SUPERMARKETS
Shore Capital rates the supermarket chain “hold” with a 301p target price to reflect the opening of its latest superstore in New Brighton on the Mersey. The broker sees the overhauled layout and content of the new store, with more fresh and prepared food, as progress for Morrison’s that can bring benefits across its UK network and produce market outperformance, margin enhancement s and rising returns.