BEST OF THE BROKERS
LAIRD
KBC Peel Hunt upgraded Laird to “buy” from “hold” ahead of next week’s first half management statement. The broker has concluded there are potential upgrades to its forecasts based on restocking trends, high incremental profit drop-through and entry into a period of easier year-on-year comparatives.
WH SMITH
Investec said that WH Smith’s expansion of its Travel division into new channels and international destinations look set to lay to rest the criticism that it can’t shrink its way to profit growth forever. The broker increased its target price on the shares to 575p, and said it is happy to remain a buyer of the stock.
RIO TINTO
Evolution Securities said Rio Tinto’s stellar share price performance is directly related to China’s massive stimulus programme having a knock-on effect on third-quarter commodity demand and pricing. The broker has therefore increased sales and revenue forecasts, but also dollar costs, and maintains its “add” recommendation.