Best of the Brokers

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Nomura rates the telecoms giant “buy” and has raised its target price from 290p to 360p. The broker has upgraded its earnings per share forecasts by 12 per cent, thanks to a greater than expected reach in the fibre broadband market. Its new target price equates to six times 2014 earnings, in line with other domestic-focused telecoms firms.

Peel Hunt has maintained a “hold” recommendation on the meat packing company and put its target price at 300p. The broker believes short-term trading has been held back in the UK due to the horsemeat scandal but should be positive long term as it reinforces the advantages of the company model. However, Peel Hunt expects flat profits due to a tough market and negative currency impact.

UBS has maintained a “neutral” rating on the business services group and raised its target price from 90p to 105p thanks to solid fourth quarter results. Good profits in the Pest Control and Textiles & Hygiene divisions give the company a positive outlook but the broker says that decreased revenues on City Link and higher finance costs offset this. UBS believes City Link will continue to struggle to achieve growth.