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BEST OF THE BROKERS

<strong>MEGGITT</strong><br />Deutsche Bank upgraded Meggitt to a &ldquo;buy&rdquo; rating, saying that it believes that the aerospace aftermarket should start to show some progress in the second half. The broker said that concerns over the engineer&rsquo;s balance sheet are over done and believes that the firm&rsquo;s strong management record will help sustain earnings.<br /><br /><strong>DSM</strong><br />As part of its quarterly review, Nomura has downgraded DSM stock to &ldquo;reduce&rdquo; from &ldquo;neutral&rdquo; and cut the target price to &curren;22. The broker expects a disappointing outlook in the next few quarters primarily owing to poor volumes and negative supply-demand balance in the firm&rsquo;s Material Science divisions. It said that Life Sciences could also disappoint due to low penicillin prices.<br /><br /><strong>HENDERSON GROUP</strong><br />Altium Securities said that Henderson shares are oversold and has returned to a &ldquo;buy&rdquo; recommendation. Following a conference call with the company, and an update on the integration of New Star, the broker believes there is a 15 per cent upside to its target price of 106p. However, it warns that shares may not gain ground until after the firm&rsquo;s interims on 27 August.