BEST OF THE BROKERS

FRESNILLO
JP Morgan Cazenove rates the precious metals miner “overweight” without a target price after the positive surprise that the company will issue a $300m second interim dividend, equivalent to about $0.42 per share, on top of the $0.21 per share announced in July. The broker is treating this second interim payout as a special dividend, and expects to see a final dividend announced this year as well.

FERROVIAL
UBS rates the Spanish infrastructure group a “buy” and upgraded its target price to €11.10 from €10.20 as it sees the potential for further upside to the share price on top of recent strong outperformance among European indices. The group has quality assets that are performing well and divestments that will allow it to crystallise value. Though Spanish construction is still suffering, the group’s balance sheet is solid.

WOLSELEY
Deutsche Bank rates the building supplies chain “hold” with a target price of £21.40, up from £18.22. The broker admits that it has probably missed the bottom of the stock price, but thinks any future macroeconomic weakness could provide a good entry point. Deutsche is impressed by Wolseley’s organic growth and has upgraded its earnings per share forecasts by 17 and 27 per cent for the next two years.