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BEST OF THE BROKERS

<strong>LONMIN</strong><br />Investec said Lonmin reported solid third-quarter operational results, but has reduced its full-year 2009 sales guidance to 680-700 ounces, from 700 ounces. The broker had already cuts its forecast to 674 ounces but the news did not change its recommendation that investors &ldquo;hold&rdquo; the stock with a target price of 1,050p.<br /><br /><strong>BAE SYSTEMS</strong><br />Ahead of BAE Systems&rsquo; first-half results, Deutsche Bank trimmed its forecasts by three to four per cent, reflecting a change in its dollar/sterling exchange rate assumption. This also meant a cut in the target price from 480p to 450p. But the broker continues to see the appeal in the stock and rates it as a &ldquo;buy&rdquo;.<br /><br /><strong>PERSIMMON</strong><br />UBS said Persimmon has made an encouraging start to the year. While it recognises good medium-term potential at the housebuilder, a low return on capital employed leads the broker to see tangible net asset value as the key valuation point (TNAV). The broker left its TNAV target price at 428p and downgrades to &ldquo;neutral&rdquo;.