Best of the Brokers

Kate Calvert at Seymour Pierce has upgraded Dixons, owner of the Currys and PC World electronics chains, from “Hold” to “Buy” with a target price of 24p. The move is to reflect strong momentum in its core UK and Scandinavian businesses driven by “market consolidation and a strong innovation pipeline”. She says the firm is currently undervalued on a price to earnings basis, with profits predicted to be £20m for 2013.

Panmure Gordon analyst Philip Dorgan has cut forecasts for Europe’s biggest home improvements retailer ahead of the company’s half-year results on Thursday, saying one-off factors such as the weather and exchange rates are hitting the firm. Kingfisher’s pre-tax forecast has been reduced by six per cent to £748m for the current financial year. However, the bank retains its “Buy” rating and target price of 350p.

The pizza maker has been given a “Sell” rating by Panmure Gordon after the broker updated its sale assumptions, leading to a dip of 0.3 per cent in forecasted pre-tax profits for the current year. The broker targets a price to earnings ratio of 15x for 2013, which it says is more appropriate for the 11-12 per cent annual earnings growth. This gives it a target price of 360p. The shares are currently hovering around 539p, leading to a sell rating.