Best of the Brokers

Peel Hunt yesterday reiterated its “buy” recommendation for Games Workshop and raised its target price for the company from 700p to 750p. The broker said following the group’s annual general meeting held last week “it was particularly clear” that the substantial changes over the last few years have resulted in a much stronger business, which is now converting into improving sales growth.

Deutsche Bank yesterday reduced its target price for Tesco from 339.75p to 394p but retained its “buy” stance ahead of the retailer’s half year results on 3 October. The bank said it expects Tesco to report a decline earnings before interest, tax, depreciation and amortisation outside the UK due to macro pressures in Europe, regulatory changes in Korea and tactical slowdowns at Tesco Bank and Fresh & Easy.

Investec has raised its target price to 3,760p from 3,605p and remains a buyer of the stock. The broker forecasts higher quarterly earnings of 34 to 38 cents per share when it reports on 20 November as a result of the jeweller’s decision in July to boost its share buyback plan by $50m to $350m. Investec said Signet has “considerable potential for long-term organic sales growth and market share expansion in its core US market.