BEST of the BROKERS
CAPITA
UBS has upgraded the outsourcing group from “neutral” to “buy” and raised its target price to 725p from 700p, saying that a buying opportunity had been created by its recent share issue and that the shares’ depressed valuation does not reflect the broker’s view of an improving trading momentum.
HOMESERVE
Peel Hunt has a “sell” rating on the home emergency repair membership service, and has lowered its target price on the stock from 220p to 130p. The broker says the move reflects a 23 per cent downgrade to its 2014 earnings estimates, as well as the impact of an ongoing FSA investigation.
SPORTECH
Panmure Gordon has kept its “buy” rating on the pool and tote betting supplier and upped its target price from 67p to 71p, saying the group’s US operations are significantly undervalued, particularly considering the company seems well placed to benefit from state regulation of online betting.