BEST OF THE BROKERS

BMW
After BMW beat quarterly profit forecasts on Friday, Goldman Sachs rates the carmaker as a “buy” with a target price of €109 (£93.78). The broker says the results, including a significantly better-than-expected net price evolution, should reassure investors of the company’s ability to perform for the rest of 2011 and into next year. BMW will launch its 3-series in 2012, which should see it benefit from a strong model cycle momentum.

RANDGOLD RESOURCES
Citi rates the gold miner as a “buy” with a target price of £88.59 after last week’s third-quarter results showed a 29 per cent rise in profit from the previous three months. The broker says mid-cap gold miners offer the best opportunities for production growth and exploration upside, with Randgold the best among that group. The target price is raised slightly from £88.46 based on a 1.6x multiple of Citi’s £55.37 net present value.

RSA
Nomura rates the insurance group as a “buy” with a target price of 148p after strong third-quarter numbers highlighted its strong balance sheet and earnings. The broker says RSA’s new CEO, Simon Lee, has a strong operational track record with the international segment. Though RSA has traditionally traded at a premium to the sector, Nomura says it is justified given the higher returns and lower risk profile.