BEST OF THE BROKERS
JP Morgan Cazenove reiterates its “overweight” rating on Informa after assessing its margin upside potential. JP Morgan said the company has proved itself good at removing costs to offset revenue shortfall, the stock offers a higher equity free cash flow yield than the business-to-business and ?professional publishing sub-sectors and
the stock may see technical buyer support.
UBS maintains a “buy” recommendation on Travis Perkins and said the BSS acquisition is strategically important and well timed. UBS said that the indicative offer to acquire BSS brings a strong fit between BSS’ plumbing business and Travis Perkin’s City Plumbing, while the good margin (7.6 per cent) in the industrial division in BSS is a new growth platform for Travis Perkins.
ZURICH FINANCIAL SERVICES
Bank of America Merrill Lynch (BoAML) said it rates Zurich Financial Services ?comfortably as a “buy”. BoAML said in a sell-off driven by heightened macro uncertainty, Zurich is a stock that BoAML is happy to put forward – it ?particularly values the defensiveness of the balance sheet and the roughly one-third of earnings that it says are annuity-like.
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