Best of the Brokers

Morgan Stanley has started covering the bank with an “overweight” rating and a target price of 390p. The analysts think concerns over fund performance and margin pressure are already priced in.

Nomura has cut its rating on the retail group from “buy” to “neutral” and lowered its target price from 328p to 287p. The broker is cautious in the short-term due to weak household spending power.

Panmure Gordon has a “sell” rating on the software firm with a 267p target. The broker thinks reports of Sage selling its US division are “tosh, of course” but can see sense in a plan to sell struggling parts of the business.