BEST OF THE BROKERS

CARNIVAL
Deutsche Bank rates the cruise company as a “buy” with a target price of 2,650p after fourth quarter results that showed earnings per share (EPS) in line with the broker’s expectations of 28 cents. Deutsche points out that while it expected no extra stock to have been purchased following a significant buyback in the third quarter, some investors may still be disappointed.

CENTAMIN EGYPT
Citi maintains its “buy” rating on the Egypt-focused gold miner, but reduces its target price from £1.67 to £1.23 to take into account some changes to its estimates after building in risks related to recent disturbances in the country. Though the broker says Egypt may eventually “settle down”, it is lowering its earning per share slightly after reviewing industry cost trends and the likely cost profile.

TESCO
Nomura rates the supermarket giant as a “buy” with a target price of 500p, saying that Tesco’s “Big Price Drop” has driven an early volume response in the third quarter. The broker expects the fully funded initiative to resonate with stretched shoppers, and along with a partially reset non-food offer should drive an improvement in trading that should build into 2012. Nomura cites UK unemployment and squeezed spending as a potential downside.