BEST OF THE BROKERS

IMAGINATION TECHNOLOGIES
Peel Hunt has upgraded the microprocessor technology firm from “hold” to “buy” following some positive announcements from the company at Mobile World Congress on next generation chips. The broker has also upped its target price to 723p from 550p, as a result of increased confidence in forecasts, particularly ahead of an expected product launch from customer Apple. The company has also confirmed that eight partners have licensed its new Rogue platform.

UNITED BUSINESS MEDIA
Nomura has maintained its “buy” rating on the media and communications group and upped its target price to 665p from 635p after impressive organic growth of 7.9 per cent at the company in 2011. The broker says that no other media company in its coverage can match UBM for exposure to China, which makes up 15 per cent of group sales. It expects organic growth of 4.7 per cent in 2012, towards the upper end of the guidance range.

VOCENTO
UBS has downgraded the Spanish multimedia group from hold to “sell” and lowered its target price to €1.60 from €1.70, due to its high share price despite its high exposure to the strongly declining Spanish advertising market. Though the broker says low liquidity could support the price, it says the risk/reward profile is not compelling. Following aggressive restructuring to save €200m over the past three years, the broker sees limited further cost cutting.