BEST OF THE BROKERS
LONDON STOCK EXCHANGE (LSE)
Analysts at Bernstein upgraded the LSE to “outperform” with a target price of 950p, based on the potential for cost-savings, a low interest rate environment and a strong post-trade environment to drive stock outperformance. The broker believes that consensus earnings for the group are understated and forecasts four per cent above average for full year 2011 earnings.
GREENE KING
Spending £30m on pubs as well as the £22m on bonds means that Greene King has now spent one quarter of the £207m it raised in the April rights issue, which is a good thing, according to KBC Peel Hunt. The broker believes this is not really reflected in the share price, which at nine times earnings reflects value, and sees a buying opportunity within its overall “hold” recommendation.
BRITISH AIRWAYS
Royal Bank of Scotland continues to see British Airways as an extreme cyclical stock, with added potential catalysts possible from a deal with Iberia, anti-trust immunity with American Airlines and helpful cost cutting. The broker has a “buy” rating on the stock with a target price of 225p, but notes that progress on Iberia is slow and that labour talks are ongoing and challenging.