Best of the brokers

G4S
Panmure Gordon has raised its target price on the outsourcing giant from 320p to 340p and maintained its “buy” rating following a meeting with management. The analysts are impressed by rising organic growth driven by new markets, and by the firm’s plans to achieve margins of at least seven per cent. Panmure also expects to see dividend yield growth of at three to four per cent through to 2015.

TULLOW OIL
Davy has lowered its net asset value to 1,457p per share and maintained its “outperform” rating on the oil explorer. The broker thinks the firm’s exploration programme is becoming more attractive, with any success such as the Sabisa-1 well in Ethiopia expected to boost the share price. Davy also sees Tullow’s $1bn drilling and appraisal activities as suitably risk-aware.

GULF KEYSTONE PETROLEUM
Peel Hunt has cut its rating on the Aim-listed natural resources company from “buy” to “hold” and lowered its target price from 242p to 197p. While the shares could spike if a court case surrounding its battle with partner Excalibur is resolved, the broker thinks the value of GKP’s assets and expected production is lower than previously thought.