Best of the Brokers for 03 February 2014
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SUPERGROUP
Peel Hunt has a “buy” rating and 1,200p target ahead of the fashion retailer’s quarterly update on Thursday. The broker points out that SuperGroup has not historically done well after Christmas as it tends not to discount, but nevertheless forecasts 14.6 per cent sales growth to £110m.
BEAZLEY
Canaccord Genuity keeps its “buy” rating and raises its target to 265p ahead of full-year results from the Lloyd’s insurer on Thursday. The broker thinks the industry has done well in underwriting in the fourth quarter, but has lowered forecasts for 2014 as it expects a hit from sterling’s strength.
COMPASS
Panmure Gordon tells investors to “hold” shares in the outsourcing and catering group ahead of this week’s trading update and keeps its target at 900p. The broker thinks organic revenue growth of 3.6 per cent in the coming year will be outweighed by foreign exchange movements.