BEST of the BROKERS

H&M
Liberum rates the fashion chain “sell” with a target price of SEK170. The broker thinks H&M will struggle to leverage costs and maintain its gross margins in a tough time for European clothes retailers. But it expects like for like sales to rise 1.3 per cent at the firm’s quarterly results on Wednesday.

TUI AG
Deutsche Bank has raised its rating on the travel group from “hold” to “buy” and has kept its target price at €6.60. The broker thinks TUI’s share price gives almost no value to the business aside from its stake in TUI Travel, even though the firm has negligible debt following recent disposals.

CAIRN ENERGY
Nomura rates the energy firm “buy” with a new target price of 382p. The broker is upbeat about the firm’s planned purchase of Nautical, but has cut its target due to falling value at Cairn India. Nomura thinks the Nautical deal helps establish Cairn as a “proper” explorer rather than a holding company.