BEST OF THE BROKERS

REXEL
Nomura rates Rexel, the French-based electrical supplies company as “buy” against a sector rating of “neutral”, with a target price of €18.00 (£15.00). The bank views Rexel as “a high quality company with the potential to grow organically through specific growth drivers in the market” and notes its solid cash flow. However, the broker has cut its full year estimates for 2012 by six per cent due to a reduction in growth prospects for Europe.

ENEL
Citigroup rates Enel as “sell” after the Italy-based energy company reported earnings before interest, tax, depreciation and amortisation of €13.284m in the nine months to September 30, above its forecast of €13.1bn. The broker says stronger-than-expected Slovakia and Balkans activity and growth of the Italian distribution division helped offset the poor performance of its Italian generation business.

DAIRY CREST
UBS rates Dairy Crest as “neutral” and maintains its price target of 336p despite the group posting pre-tax profits of £43.7m, beating the bank’s expectations of £41m. UBS says that whilst management has done a good job maintaining earnings, its large liquid milk operations struggle to grow top-line, and “with competition intense” Dairy Crest generates relatively poor returns. The broker sees better value elsewhere.