BEST of the BROKERS
HOME RETAIL GROUP
JP Morgan believes shares in the owner of Argos, Homebase and Habitat are “overweight” and has a target price of 133p. Although the first quarter has been difficult for the retailers, the upcoming bank holidays along with an accelerated store closure programme should provide some comfort to the markets.
WOLSELEY
UBS rates the buildings supplies company as a “buy” but has cut its target price by 150p to £25. The broker sees a slowdown in Europe muting momentum in the short term but thinks the economic recovery and Wolseley’s improving market share keep the investment case intact.
PETRA DIAMONDS
Bank of America Merrill Lynch has upgraded the diamond producer to “buy”, raising its target price to 170p. The broker believes there will be a slight dip in prices in 2012 followed by a smaller rebound in 2013, while demand led by China is expected to keep prices high in the long term.