BEST OF THE BROKERS
PACE
Investec said that its analysis of Pace’s underlying numbers, coupled with a belief in the strong medium-term drivers for the industry, encouraged it to take a positive stance on the stock and initiate with a “buy” rating and a target price of 273p. The broker believes Pace will benefit from continuing take-up of high definition content.
RENTOKIL INITIAL
Morgan Stanley remained “overweight” on Rentokil Initial after the firm’s third-quarter results, and raised its price target by four per cent to 120p, as the investment case continues to be about the long-term self-help opportunity. The broker said concerns that cost savings would be absorbed by price pressure are overdone.
TOMKINS
Panmure Gordon said that “the Tomkins moment”, or the long awaited recovery of old-economy sectors in the US, is moving a step closer. The broker said that it is worth buying the stock in advance of potential accelerated earnings recovery in the first half of 2010, and it edged up its target price from 210p to 220p