BEST OF THE BROKERS

RSA
Citi rates the insurance group “neutral” and has trimmed its target price by 2p to 113p following the firm’s results last Thursday. The broker remains cautious about the firm, despite some positive action from management, thanks to a continued fall in reserve releases and low interest rates dampening investment yields.

XCHANGING
JP Morgan rates the IT and outsourcing group “overweight” and raises its target price from 90p to 106p. The broker was impressed by the firm’s earnings per share, which beat expectations, and expects to see further progress this year on the back of a string of contract wins.

COSTAIN
Panmure Gordon rates the engineering company “buy” with a target price of 230p ahead of the firm’s full year results on Wednesday. Panmure expects to see pre-tax profit of £22m, slightly behind consensus forecasts, and earnings per share of 26.2p.