Best of the Brokers for 24 February 2014
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BRITISH AMERICAN TOBACCO
Panmure Gordon tells investors in the tobacco firm to “hold” shares and has nudged its target down to 3,225p ahead of full-year results on Thursday. The broker thinks the pace of black market growth is slowing and the firm can deliver further savings, despite an expected drop in earnings per share.
REDROW
Peel Hunt thinks the property firm could be one of the fastest growers in the housebuilding industry over the next few years, and keeps its “buy” rating and 350p target. The broker believes that first-half results on Thursday could start to convince the market of Redrow’s potential.
SMITHS GROUP
UBS has cut its rating on the engineering group from “neutral” to “sell” and lowered its target price from 1,450p to 1,340p. The broker has lost hope for a break-up of the firm, and thinks Smiths’ earnings growth, at five per cent a year through to 2017, puts it below many of its rivals.