BEST OF THE BROKERS
ERICSSON
UBS rates the telecommunications company a “buy” and has a 12-month target price of $16.04 (£9.72), up from $15.24. The broker has raised its earnings forecasts by four to six per cent for 2012 onwards and has raised its capital expenditure forecasts to around four per cent a year on the back of new broadband technology. The broker also notes the firm is strongly positioned to outperform in 2012, following recent contract wins.
TATE & LYLE
Morgan Stanley rates the food producer “overweight” with a target price of 630p following full-year results. The broker sees potential for the company as it progresses away from bulk ingredients activities towards specialty food ingredients, and now predicts sales growth of five per cent. But the broker adds that the share price momentum relies on Tate & Lyle delivering accelerated growth.
GLAXOSMITHKLINE
Goldman Sachs has downgraded the pharmaceutical company from “neutral” to “sell” and has lowered its target price by 130p to 1,110p as it expects the stock to revert to the mean for the sector. The broker has cut its earnings per share forecast to three per cent below consensus, reflecting in part the generic competition for Lovaza, the prescription fish oil capsule, and asthma treatment Advair.