Panmure Gordon has upgraded engineering company Babcock to “buy” and raises its target price from 760p to 850p. The broker is impressed by last week’s £200m contract win with the Royal Australian Navy to provide support for the Navy's eight Anzac class frigates, and has taken the decision to upgrade the target due to recent share price underperformance and the recent re-rating of its rivals.

UBS sees money in trucking, upgrading Scania to “buy” and increasing the target price from 125 Swedish Krona to 160. Although the broker believes the overall truck market will remain flat in 2012, it sees substantial growth of 26 per cent in 2013 as the replacement cycle from trucks sold in 2005-2008 gathers momentum. A large number of trucks were sold before the financial crisis and these fleets of ageing vehicles will soon need replacing, it notes.

Numis have upgraded fund manager Jupiter from “hold” to “buy” with a target of 305p. The broker sees an improvement in retail investor sentiment and equity flows are recovering, all of which leaves Jupiter as the best positioned listed company to benefit, in its eyes. Numis expects growth in the UK retail savings industry and sees Jupiter as a core long term holding in the investment sector.