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BEST OF THE BROKERS

<strong>LOGICA<br /></strong>Logica received a double upgrade to &ldquo;overweight&rdquo; from Morgan Stanley, which says the stock is now its top pick. &ldquo;Time to get positive&rdquo;, said the broker, as it raised the price target 86 per cent to 130p. It said that the discount on the stock due to gearing concerns is no longer warranted and that it sees the cycle troughing.<br /><strong><br />REED ELSEVIER</strong><br />Deutsche Bank downgraded Reed Elsevier to &ldquo;hold&rdquo; after learning that its portfolio of businesses is more cyclical than it expected and that more catch-up investment spend is needed. However the broker believes that last week&rsquo;s share placing, while dilutive, does resolve the balance sheet issues and cuts its target price to &euro;8.00.<br /><strong><br />INCHCAPE</strong><br />Nomura upgraded Inchcape to &ldquo;buy&rdquo; and increased its price target to 35p. Despite the recent outperformance of the stock, the broker sees further upside risk to earnings, given Inchcape&rsquo;s strong operational performance and working capital management. It highlights a bull-case scenario of 2.4p earnings per share this year.