BEST OF THE BROKERS
ROLLS-ROYCE
Investec rates the aerospace and defence giant “buy” with a target price of 850p. The broker has lifted its pre-tax profit forecasts by two per cent for this year, with defence and new acquisition Tognum more than offsetting lower profits at marine and energy. Investec now predicts pre-tax profit of £1.5bn in 2012. It notes that management’s cautious delivery of results often detracts from the underlying story of strong growth.
INTERCONTINENTAL HOTELS
Panmure Gordon rates the hotelier “buy” with a target price of £16.25, up from £15.55. The broker has raised its earnings per share forecasts by seven per cent for the coming year, after IHG beat its 2011 expectations. It has also hitched its revenues per available room forecasts by 3.5 per cent. Panmure is encouraged by the recent strong performance of US-based peer Marriott, which forecast revenue per room growth of up to seven per cent.
AUREUS MINING
Singer Capital Markets rates the miner “buy” and has raised its target price from 102p to 132p. The broker expects to see significant gold discoveries at the firm’s New Liberty mine, and is convinced the company is one of the highest quality exploration and development plays in the UK market. It also notes that the New Liberty project has a lower cost than many other West African mines, at approximately $632 per ounce of gold.