BEST OF THE BROKERS
BELLWAY
KBC Peel Hunt says that Bellway played both the upswing and the downswing better than its competitors, but still issued a “Sell” recommendation for the home construction company. It says valuations have been based on the wrong metric and it cannot justify the current share price. It has set a target price of 600p.
NESTLE
Despite its recent share price rally, Evolution Securities says that Nestle still has a compelling valuation. The company is not expected to make any large acquisitions, meaning shareholders should be set to receive a decent payout this year. The broker reiterated its “Buy” recommendation and upgraded its price target.
RANK GROUP
Panmure Gordon has initiated coverage on Rank Group, with a “Buy” recommendation and target price of 113p for the gaming firm. Strong positive momentum in the casino business, and stabilisation in bingo, should justify the large increase on the current share price after two very tough years.