BEST OF THE BROKERS
GLAXOSMITHKLINE
Evolution Securities rates GlaxoSmithKline (GSK) as “buy” and believes that with the Avandia overhang removed, 2010 should represent a period of outperformance. Business performance earnings per share are forecasted as 28.1p excluding the legal provision, and post the legal provision of 1.5p, according to Evolution, which believes that GSK is past its earnings trough.
MOTHERCARE
UBS rates Mothercare as “hold” due to international retail sales growth remaining strong at 20 per cent. Mothercare’s earnings per share were downgraded due to poor UK trading outlook, but UBS believes Mothercare has a strong business model with good prospects and expects international expansion to generate double digit earnings for the foreseeable future.
ROYAL DUTCH SHELL
Credit Suisse rates Royal Dutch Shell as “hold” and expects Shell’s earnings per share (EPS) to increase between 2011 and 2015. Credit Suisse’s EPS estimates for the period are broadly unchanged, and it expects trading profits to be weaker and refining to remain loss making, but predicts an overall improvement with margins picking up mostly in the US.