BEST OF THE BROKERS

3i INFRASTRUCTURE
JP Morgan Cazenove rates the infrastructure investment company as “overweight”, following a deal announced yesterday that will reduce its cash balances but enhance its dividend yield. The broker says the acquisition of Networks Finland is a core infrastructure deal that differentiates the company from other PFI-focus peers, and one that could offer the prospect of a 5-10 per cent cash yield and a 10-16 per cent total return from a regulated entity.

ASHTEAD
UBS rates the equipment hire business as a “buy” with a target price of 270p, after rival United Rentals announced a merger with RSC last week. As a result of the United Rentals deal the broker expects depots to close and staff to be shed at the merging companies, meaning Ashtead should benefit as the sector’s next largest player. It sees the opportunity for organic growth at Ashtead as “very attractive” in the near term.

DOMINO’S PIZZA
Goldman Sachs adds the pizza delivery company to its “conviction buy” list with a target price of 575p, saying the business offers an attractive combination of high cash return and medium-term structural growth potential. Domino’s plan to operate around 1,200 stores by 2020 fits with the broker’s belief the trend towards home delivery dining remains strong, and expects 60 of the new stores openings to come in the next year.