BEST OF THE BROKERS
VOLKSWAGEN
Societe Generale said the merger between Porsche and Volkswagen (VW) looks to be back on track and reiterated its “Buy” recommendation on the latter. Analyst Eric-Alain Michelis said the deal should allow VW to buy out the sports car giant without taking on its €10bn debt pile. If speculation of the group’s €8bn price tag is true, he said, it would enhance VW’s earnings to the tune of 5 per cent in 2010.
VODAFONE
Bernstein Research made a case for buying Vodafone on the grounds expectations are at an “unrealistic low”. Analyst Robin Bienenstock said although revenues will be under pressure for much of this year, “cost cutting will become increasingly evident in the next few sets of results”. He said consolidation in European telecoms will aid Vodafone, giving it a target price of 180p with an “Outperform” recommendation.
TRINITY MIRROR
Investec kepts its “Hold” recommendation on Trinity Mirror. Analyst Gareth Davies maintained his 82p target ahead of the group’s first-half of 2009 results on Friday. He said he is unlikely to turn buyer on the stock until the national newspaper business, which has been stricken as advertising revenues have plummeted, stabilises. “Though we would reiterate a preference for Trinity Mirror over Johnston Press,” he said.