Best of the Brokers for 5 March 2014
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TESCO
Cantor Fitzgerald has cut the supermarket from “hold” to “sell” and slashed its target from 333p to 282p. The broker thinks rivals can easily beat Tesco’s recent price promises, meaning the firm erodes its margins in the UK to little benefit. Cantor forecasts an 8.4 per cent profit fall this year.
RENTOKIL
Barclays keeps its “overweight” rating on the pest control group and has raised its target from 117p to 143p following full-year results. The broker is impressed by the new chief Andy Ransom’s strategy and thinks it will accelerate revenue and earnings growth.
HENDERSON
Numis has cut the fund manager from “hold” to “reduce” with a target of 210p. The broker thinks Henderson should be trading at a discount to the sector, even in light of the firm’s new and tougher target to generate five per cent organic asset growth a year.