Best of the Brokers for 04 March 2014
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XCHANGING
Cantor Fitzgerald has cut the outsourcing and IT group from “buy” to “hold” and lowered its target from 200p to 185p to reflect an expected pause for breath in the firm’s recovery plan this year. The broker thinks the firm is spending a surprisingly big sum of money to support growth.
PRUDENTIAL
UBS thinks the time is right to “buy” shares in the insurer, moving up from a “neutral” rating thanks to the Pru’s diverse business in Asia that the broker thinks is weathering volatility well. UBS has raised its 12-month target from 1,280p to 1,638p.
PEARSON
Berenberg keeps its “hold” rating on the publisher but cuts its target price from 1,350p to 1,022p following a profit warning last week. The broker thinks Pearson shares are an interesting play on the future of education but fears the company is struggling against structural decline.