Best of the Brokers

Morgan Stanley reiterates its “overweight” rating on Tullow Oil. It believes the shares are undervalued given Tullow has opened three new oil regions in the past year. Development concerns are “overdone”, it says.

Panmure Gordon increases its target price to 375p from 327p and reiterates its “buy” rating ahead of Friday’s first-half results. Expects strong growth in sales and earnings to lead to a 15 per cent dividend hike.

Investec reiterates its “buy” rating on WPP ahead of Thursday’s results. Investec is hoping the first-half figures will prove a catalyst for the shares, enabling it to boost its 860p target price.