BEST OF THE BROKERS
SCHRODERS
Citi downgrades the asset manager from neutral to “sell” and increases its target price on the stock to £13.70 from £13.10, after a year-to-date rally of 18 per cent in the value of its shares. The broker says that Schroders – and fund managers in general – need to see near-term fund flow recovery to justify the performance, and thinks the stock has responded too quickly to the market rally.
SERCO GROUP
JP Morgan Cazenove reiterates its “overweight” rating on the support services group with a target price of 650p, seeing a better outlook for the company in 2012 than over the last year. The broker forecasts a pick up in organic growth to five per cent this year and six per cent in 2013, and says an improved outlook could lead to a re-rating.