Best of the Brokers

JOHN WOOD GROUP
Goldman Sachs upgraded the oil and gas services company to “buy” from “neutral” and raised the target price by 28p to 940p yesterday, following “recent underperformance”. According to the analyst, the company contains a lucrative combination of relatively low risk, growth and high cash flow. John Wood is likely to benefit from a high demand for subsea and pipeline engineering, Goldman Sachs concludes.

LLOYDS BANKING GROUP
UBS yesterday lifted the bank from “neutral” to “buy” and raised the price target by 10p to 60p, predicting regulation on UK banks to be less aggressive than expected. According to UBS, the bank’s strategy is simpler than the ones of its peers, and is likely to deliver rising margins and falling costs. The analyst adds that Lloyds is better off in the mortgage market than competitors Barclays and RBS.

MAJESTIC WINE
Espirito Santo lowered its target price for the wine retailer by 10p to 450p yesterday and kept a “neutral” rating. It follows a Christmas trading update that sparked a cut in earnings estimates. Majestic Wines faces “increased volatility” due to “tough macro conditions”, the analyst said, adding that the company is still attractive in the longer term due to the management team and quality of the business.