BEST OF THE BROKERS

GROUPE EUROTUNNEL
Morgan Stanley downgrades the channel tunnel operator to “equal-weight” from over-weight, with a target price of €4.70 (£3.88) after a circa 30 per cent drop in its share price from its peak. The broker cites a weaker macro outlook and change in the market’s approach on valuation for the fall, and says that despite a bigger-than 50 per cent upside to fair value, it prefers Atlantia in the sector.

INTERNATIONAL PERSONAL FINANCE
Citi downgrades the doorstep lending firm to neutral and lowers its target price from 317p to 195p after currency weakness drove the broker to make a cut to its earnings predictions for the company. Citi also sees slowing economic growth as a threat, particularly potential “tail risk” in Hungary from both the recent introduction of a rate cap and market concern over the sovereign’s solvency.

SABMILLER
JP Morgan restates its investment case on the global brewer, which it gives an “overweight” rating and target price of 2,640p. The broker sees SAB’s key strengths as lying in its leading market positions and exposure to growth markets, especially the Latin America and Africa (ex-South Africa) divisions, which account for 42 per cent of group earnings before interest, tax and amortisation.