BEST OF THE BROKERS
FRANCE TELECOM
Nomura rates the company a “buy” and has a target price of €19.20 (£16.84). The broker has raised its earnings forecasts ahead of consensus following an investor day. The broker also thinks that the company is well placed to step up its investment phase in the near term, and sees an opportunity for increased share growth in the company over the next couple of years.
SERCO
Canaccord rates the outsourcing company a “buy” and has a target price of 680p. The broker has upgraded its earnings per share forecast by five per cent, thanks to the group’s £385m acquisition of Indian outsourcer Intelenet earlier in the week. The broker notes Serco’s confidence in using that acquisition to drive shareholder value in the next year, and sees 18 per cent potential upside.
IMPERIAL TOBACCO
UBS rates the group “buy” with a target price of £23.85. The broker has trimmed its 2011 earnings forecasts by two per cent, following an announcement that the tobacco company PMI would reduce the price of its major brands in Spain, forcing others to follow suit. The broker thinks Imperial Tobacco is the most exposed to Spain of the large firms, with most to lose if the government raises its minimum duty.