views

BEST OF THE BROKERS

<strong>AEGON</strong><br />Nomura said that it sees Aegon&rsquo;s capital position as being very solid and views the firm as having a &ldquo;belt and braces&rdquo; approach to capital management. The broker thinks that the firm&rsquo;s economic rationale for early repayment to the Dutch government is compelling and rates the stock a &ldquo;buy&rdquo; with a &euro;7.00 target price.<br /><br /><strong>HAMPSON INDUSTRIES</strong><br />Investec has placed its Hampson Industries target price of 142p under review, believing the stock to be undervalued. The broker noted that the engineer&rsquo;s recent disposal of HAM for &pound;23.7m is dilutive to earnings, but it said the market will focus on the reduction of net debt, which has been of concern. The analysts rate the stock a &ldquo;buy&rdquo;.<br /><br /><strong>BARRATT DEVELOPMENTS</strong><br />Panmure Gordon reiterated its &ldquo;sell&rdquo; recommendation on Barratt Developments amid speculation over a rights issue. The broker believes the group will seek to raise &pound;500m through an issue when it reports its full year results and expects further write-downs, which could mean the group comes close to breaching its covenants.