BEST of the BROKERS
DAILY MAIL & GENERAL TRUST
Peel Hunt has upgraded the media group from “sell” to “hold” and has raised its target price slightly, from 409p to 412p. The broker thinks DMGT could raise cash by selling or floating its Risk Management Solutions business, which it values at between £518m and £605m. While Peel Hunt still has concerns over the firm’s local newspaper business Northcliffe, it thinks a sale is still possible.
ASTRAZENECA
UBS rates the pharma group “buy” and has raised its target price by £1 to £35. The broker has also added the firm to its “key calls” list as it thinks recent management changes could prompt a new direction that could unleash value for shareholders. UBS believes the firm could expand globally by buying up low-cost medicines, and by acquiring assets that protect its Crestor drug from profit erosion from generic rivals. It also looks at the possibility that the firm is sold in its entirety.
ROYAL BANK OF SCOTLAND
Deutsche Bank rates the part-nationalised lender “hold” and has lowered its target price from 30p to 28p, despite forecast-beating results last week. The broker is concerned that RBS’s Irish business continues to suffer, with increasing charges from property loans eating into group earnings. However, Deutsche is impressed by the bank’s speedy deleveraging, which could provide some support for its net interest margins.