BEST of the BROKERS

BSKYB
Espirito Santo’s Giasone Salati has issued a “buy” rating on satellite TV giant BSkyB and a fair value of 820p, up from 790p. Referencing a propriety survey, the analyst believes that BSkyB’s NOW TV product could attract a potential 650,000 new users paying £10 per month. Espirito Santo also points towards the potential for a profitable roll-out of fibre-based products if the firm can cut a deal with BT.

CARNIVAL
Investec’s James Hollins has substantially increased the target price for cruise operator Carnival from 2,500p to 3,000p, calling the stock a “key sector pick”. The holiday firm has recovered from the loss of its Costa Concordia ship to benefit from reduced fuel costs and better-than-expected bookings in the wake of January’s disaster. Hollins says investors should back a firm with “an exceptional market position”.

SABMILLER
Liberum Capital’s Pablo Zuanic has downgraded the brewing giant to “sell” on the basis that its valuation premium against its peers is unwarranted. The firm also cut its price target by 10 per cent to 2,250p. Now that the likelihood of a takeover bid from Anheuser-Busch InBev appears to have decreased, the broker feels that it is time to sell – especially given “unexciting” full year guidance.