Best of the Brokers for 19 August 2014
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ARM HOLDINGS
Goldman Sachs has added ARM to its “conviction buy” list, with a target price of 1,400p. The broker thinks first half weakness is temporary rather than structural, and anticipates a better second half, with high end smartphone launches incorporating ARM designs to benefit royalties.
RENTOKIL INITIAL
Investec has upgraded to “buy” from “hold”, raising the target price to 150p from 100p. The broker believes that decisive action by management on legacy issues has helped the company, with a credible growth strategy likely to result in a step change in operational performance.
TRAVIS PERKINS
Liberum has kept its “buy” rating, but cut the target price to 2,100p from 2,190p. The broker thinks the new management team can deliver significant improvement to group returns, with first half results having shown good growth and rising returns, and impressive cost control.