Best of the Brokers

CABLE & WIRELESS COMMUNICATIONS
Liberum Capital’s Lawrence Sugarman has downgraded Cable & Wireless Communications from “Hold” to “Sell” and recommends investors take the opportunity to lock in profits. The FTSE 250 telecoms group makes most of its money from operations in Monaco and island territories with historic connections to the UK. But Sugarman says “the valuation is starting to look stretched” and warned of possible cash flow generation concerns.

WORKSPACE GROUP
Keith Crawford at Peel Hunt has upgraded Workspace Group from “Hold” to “Buy” because the property firm offers “a rare opportunity to invest in both the London SME and residential markets”. Crawford ups the target price from 246p to 300p, citing the firm’s investment in business centre refurbishments, its ability to benefit from infill residential development and a high occupancy rate as reasons to be optimistic.

REGENERSIS
Panmure Gordon’s Paul Jones has reiterated his “Buy” rating on Regenersis, which specialises in outsourced repairs to consumer electronics. Strong full-year results cause him to increase the target price from 115p to 159p as expansion into new territories, growth in high margin areas and a UK tie-up with Virgin Media suggest “further material growth over the medium term”.