Best of the brokers

To appear in Best of the Brokers, email your research to

Nomura has cut its rating on the miner from “neutral” to “reduce” with a target price of 1,700p, or 100p lower than its previous target. Nomura’s analysts think a recent share price rise has been based on positivity around new chief executive Mark Cutifani, but they believe it is too soon to buy into the firm’s potential value in the short to medium term and that consensus profit estimates are too high.

Panmure Gordon has a “buy” rating on the insurance and investment firm and has raised its target price from 154p to 190p. Analyst Barrie Cornes expects to see a four per cent rise in operating profit to £1.098bn when the firm reports full year results tomorrow, with strong sales in the UK and US. Panmure believes L&G shares are still undervalued, with its new target representing 1.15 times enterprise value.

UBS has cut the retailer from “buy” to “neutral” and lowered its target from 145p to 135p. Analyst Andrew Hughes warns that the European retail industry is “running out of steam”, as the recovery in the global economy risks higher commodity prices and a further erosion of sterling’s spending power. UBS has also cut Next from “buy” to “neutral” as part of a sector-wide downgrade.