BEST OF THE BROKERS
AUTONOMY
Noble said that Autonomy’s third quarter was solid with strong underlying cash conversion and substantial improvement in its disclosure. However, the broker said the earnings boost was primarily due to higher research and development capitalisation and downgraded the stock to “neutral”.
INCHCAPE
UBS increased its price target for Inchcape from 30p to 38p, on the back of strong third quarter trading. However, with UK scrappage assistance due to end in the first half of 2010, the broker continues to forecast a poor outlook for the UK in 2010. It retained a “neutral” stance on the shares.
TESCO
Nomura analysts upped their price target on Tesco from 405p to 526p, offering 39 per cent upside potential to current levels, and reiterated thier “buy” rating. The broker estimates that, with five years of disciplined growth, Tesco will effectively create a “new company” worth £16.4bn.