BEST of the BROKERS

FIRST GROUP
JP Morgan has maintained its “neutral” rating on the transport group but cut its target price from 364p to 262p, blaming significantly lower guidance for 2013 bus margins in the group’s pre-close trading statement. However, the broker sees the problems in the bus division as “fixable”.

RESOLUTION
UBS has downgraded the insurance group from “buy” to “neutral” and dropped its target price from 300p to 250p, saying a proposed front/back book split proposed by management would release limited value. The broker says the firm should instead focus on improving its return on enterprise value.

PREMIER FOODS
Citi rates the food manufacturer as “neutral/high risk” with a target price increase from 5p to 20p, saying that the outlook for the company is much improved over the past four months. The broker predicts more than £100m in free cash flow over the course of 2012-2013.