BEST OF THE BROKERS
VODAFONE
UBS raised its price target for Vodafone to 130p, saying the firm will benefit from UK market repair, a stronger euro and moves in listed/non-controlled assets. The broker removed its short-term “sell” and moved the stock to “neutral” saying there are few short-term catalysts for underperformance due to a lack of sector results.
DS SMITH
A better-than-expected first quarter performance from DC Smith had led Goldman Sachs to increase its 2010 earnings forecast by five per cent and 2011 by four per cent. The broker remains “neutral” on the packaging firm’s shares, with a 116p target price, noting that the company remains cautious regarding demand in its market sectors and input cost increases.
IMAGINATION TECHNOLOGIES
Evolution Securities said that the surge in Imagination’s share value has priced much expectation into the stock, but that 2009 will see a ramp in royalty revenues that could lead to forecast upgrades. The broker initiated coverage with a “buy” recommendation, saying that the firm’s recent entry to the FTSE 250 has put it on the radar of new potential investors.