Best of the Brokers for 18 March 2014
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MICRO FOCUS
Barclays upgraded Micro Focus from “equal weight” to “overweight” yesterday with a raised target price of 900p (from 800p). The broker expects that Micro Focus is soon to return to organic growth of up to five per cent now that its business has stabilised operationally.
TESCO
Bank of America Merrill Lynch have downgraded Tesco from “neutral” to “underperform” after rival Morrisons’ announcement last week to invest £1bn in slashing prices. The broker, which also lowered its target price to 270p from 350p, warns implications may be “substantial”.
BALFOUR BEATTY
UBS keeps its “sell” rating on the construction group but nudges its target 10p higher to 260p. The broker believes the recovery for Balfour’s business will be bumpy, made more difficult by a restructuring in the UK and tough trading in Australia.