Best of the Brokers

ARM Holdings
Investec has downgraded the FTSE 100 microchip designer from a “Buy” to a “Hold”, saying that the company’s “exceptional long term business outlook” is reflected in its share price, which has almost doubled since July last year. Analyst Julian Yates highlighted the potential risk of a move from US chipmaker Intel into ARM territory, cutting the company’s target price from 900p to 800p. Morgan Stanley also cut its rating.

Analysts at Numis Securities have upgraded the Egyptian miner from an “Add” to a “Buy” recommendation following recent falls in the London-listed company’s share price. Numis’s Cailey Barker says that after a turbulent 2012, which saw court cases, delayed exports and political unrest, Centamin’s outlook is rosier for 2013. However, given the recent stock falls, the target price has been cut from 115p to 80p.

Despite Sir Martin Sorrell’s company trading at its highest level ever, Liberum Capital’s Ian Whittaker thinks the stock has further to go, raising his price target to 1180p from 1100p and reiterating a “Buy” recommendation. “WPP’s revenues come from faster growing markets, giving it the largest exposure to these markets,” Whittaker said. WPP has made a number of acquisitions in China in recent months.