BEST of the BROKERS
JOHNSON MATTHEY
Deutsche Bank rates the chemicals group “buy” with a target price of £24.50. The broker expects good second-half results when the firm reports tomorrow, with a 14 per cent rise in pre-tax profit driven by higher demand for automotive products and precious metals.
NEXT
Nomura rates the high street retailer “buy” and has raised its target price to £33.30. The broker likes Next’s blend of brand, credit and service and believes the firm can grow its catalogue earnings per order four times faster than rival Asos, and can expand the business overseas.
LOGICA
Merchant Securities rates the IT services firm “hold” with a target price of 105p. The broker thinks CGI’s recent 105p per share takeover bid appears risky, given the combined firm’s debt profile and worsening outlook in Europe, but also believes a counter-bid is unlikely.