Best of the Brokers

SPIRIT PUB COMPANY
Broker Numis has reiterated its “buy” rating on the pub stock after it said the company’s growth prospects were “undervalued”. Analysts said there were concerns about the firm’s bond amortisation schedule in 2015 but that it should be resolved by refinancing. The firm’s net debt to earnings ratio should also fall in 2015, a note said. Numis has a target price of 85p on the stock.

CARNIVAL
Cruise line owner Carnival has had its target price cut by Standard & Poor’s equity research after a fire on its passenger vessel Triumph. S&P maintained a “strong buy” conviction on the stock despite the fire. It said the company now faced a “PR headache” because the fire “may remind investors of the 2012 Concordia disaster”. The target price of 2,500p is reduced on lowered multiples.

MANAGEMENT CONSULTING GROUP
Peel Hunt reiterated its “buy” rating on the only listed management consulting firm on the FTSE, which the broker describes as “peerless”. It has given the business a 40p target price, a big premium to its current trading range. Management Consulting Group has a price to earnings multiple of 8.3 times and Peel Hunt said the shares were “undeniably cheap” at the current levels.

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