BEST of the BROKERS

HUTCHISON CHINA MEDI
UBS has upgraded Chi-Med from “neutral” to “buy” and raised its target price by 10p to 470p, after strong first-half results beat expectations on pre-tax profits by 66 per cent. The broker said the firm’s UK divestments continue to make sense and is assuming there will be more to come.

STHREE
Shore Capital has upgraded its outlook for the UK recruitment sector and named SThree as its top pick, upgrading from “hold” to “buy” with a target price of 283p. Though recent trading updates have led to downgrades to estimates, the broker says SThree has demonstrated relative stability.

GULF KEYSTONE PETROLEUM
Edison Investment Research has initiated coverage of the Kurdistan-focused explorer with a valuation of between 271p and 584p per share, even before taking into account any gas production. The broker says its core net asset value of 216p should grow as the current uncertainties in the area become clearer.