BEST of the BROKERS

BALFOUR BEATTY
UBS has downgraded the construction company from “buy” to “neutral” and cut the target price from 340p to 310p citing a “less compelling” valuation. The brokerage noted that key comps have de-rated, particularly in the US and said that although Balfour Beatty guided to earnings in line with expectations, “the mix is slightly worse” with profit drops offset in other operating divisions.

BSKYB
Numis issued the broadcaster’s stock with an “add” rating and a target price of 815p ahead of its full year results later this month. The broker said it had moved to “buy” following the steep fall in the group’s shares following the Premier League announcement, but has now moved back into “add” territory following a strong share bounce back. Numis forecast BSkyB could announce an additional £750m share buyback.

MESSAGING INTERNATIONAL
Seymour Pierce has initiated coverage of Messaging International with a “buy” rating and a target price of 2.1p, based on eight times its diluted earnings per share forecast for 2013. The company “has a good track record of growing earnings through providing customers with innovative messaging solutions, which we expect to continue,” the brokerage said.