BEST OF THE BROKERS
CADBURY
Investec said that Cadbury’s interim management statement should be good for valuations of the firm, but that a more contingent approach to the potential end-games leads it to be less bullish overall. The broker decreased its target price for the stock to 840p and downgraded its rating to “hold”.
BP
Citigroup said that, with BP trading on the cusp of our revised 600p target, and given the broker’s perception of slowing relative operational momentum, it no longer sees the valuation as sufficiently compelling to retain a “buy’ rating. It downgraded the stock to “hold” with an increased target price of 575p. It said that Shell and BG are its preferred stocks within the sector.
LAND SECURITIES
Deutsche Bank initiated coverage on Land Securities with a “buy” rating and a target price of 740p, believing that the recent rights issue and disposals have significantly strengthened the firm’s balance sheet, with the loan-to-value ration now around 40 per cent. It added that it sees the group’s London bias as a positive, although the retail assets are of mixed quality.
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