Best of the brokers

Berenberg Bank yesterday cut its recommendation for pump maker Weir Group from “buy” to “hold”. Alex Virgo, analyst at Berenberg, yesterday told City A.M. that the decision was “valuation driven, a call on the fact that the stock has had a great run and now it is fairly valued”. Its shares fell on the FTSE 100 yesterday, to close down 4.36 per cent.

Goldman Sachs yesterday cut its iron ore forecasts and cut Rio Tinto from “neutral” to “sell”, adding it to the bank’s conviction sell list. “In line with our forecast of falling iron ore prices, we see minimal free cash flow and significant earnings declines,” Goldman said in a research note yesterday. It added that more than 90 per cent of Rio’s earnings came from iron ore last year.

Deutsche Bank yesterday downgraded Mexican miner Fresnillo from “hold” to “sell”, lowering its target price by almost 24 per cent to 1,300p. The bank said that while Fresnillo remains a good company with quality management and high-margin assets, the stock has already priced in a “near-perfect delivery” of its medium-term growth prospects.