Best of the Brokers

G4S
RBC has lifted the security company from “Outperform” to “Top Pick” with a price target of 320p, believing it will catch up with its peers after having underperformed the services sector by 27 per cent last year, as well as the FTSE 100 by 11 per cent. In 2013, G4S is likely to see “solid organic growth”, and according to RBC the resolution of the botched Olympics contract should soon be “signed off”.

AVEVA
Merchant Securities downgraded the engineering software company to “Hold” from “Buy” yesterday and lowered its target price by 220p to 1,980p following “disappointing interims”, particularly in China and Latin America. The downgrade comes ahead of Aveva’s earnings report for the third quarter later this month, and according to the Merchant it could well contain further disappointments.

CHEMRING
UBS has upgraded the aerospace and defence company to “Buy” from “Neutral” and lifted its target price by 60p to 360p, expecting the newly appointed chief executive’s restructuring plan to deliver strong growth. According to UBS, the potential for a successful restructure is not priced in at the moment, with the consensus estimates for the next financial year being “too pessimistic”.