Best of the Brokers for 12 May 2014
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ARROW GLOBAL
Numis thinks the debt purchaser could be a big beneficiary of Barclays’ decision to create a “bad bank”, with the potential for big acquisitions across Europe. The broker has upgraded its recommendation from “add” to “buy” and keeps a target price of 285p.
BRITISH LAND
Peel Hunt has a “buy” rating and 730p target ahead of the property giant’s full-year results on Wednesday. The broker thinks the firm’s City offices, which make up 16 per cent of its holdings, will have performed well, while the overall investment portfolio’s value will rise four per cent.
SERCO
UBS has cut the outsourcing group from “neutral” to “sell” and lowered its 12-month target from 400p to 300p to reflect uncertainty as new boss Rupert Soames tries to right the company. However, over the long-term the broker likes Serco’s broad spread of businesses.