BEST OF THE BROKERS

PETROFAC
Citigroup has downgraded the oil explorer to “neutral” and has raised its target price from £16.50 to £18.50. The broker expects the firm to spread to more regions in the coming year and win approximately $6bn of new work. While the firm is trading at a ten per cent discount to the sector on a price to earnings ratio of 14 times, the current share price reflects its growth prospects.

MICHAEL PAGE
UBS has upgraded the recruitment firm from “sell” to “neutral” and has raised its target price from 310p to 470p. The broker is now expecting to see nine per cent net fee growth in 2012, following the firm’s results last week, having forecast a nine per cent annual decline earlier this year. UBS supports Michael Page’s expansion into new markets, though notes that volatility and costs could limit near-term growth.

MISYS
Espirito Santo rates the support services group “sell” with a target price of 263p. Temenos, which broke off merger talks with Misys last week, gave a gloomy outlook that the broker said reflects its view that market conditions in banking software remain difficult. This could dent the bid price that Misys can eke out of rival bidders Vista, CVC and ValueAct, the broker suggests.