Best of the Brokers for 11 February 2014
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G4S
Panmure Gordon has cut the outsourcer from “hold” to “sell” with a target price of 200p, down from 275p. The broker thinks there are many headwinds for G4S, with slowing growth in developing markets alongside currency movements and margin pressure in the UK and US.
ADMIRAL
Goldman Sachs has downgraded the insurer from “buy” to “neutral” with a 12-month target of 1,440p to reflect the shares’ recent outperformance. Goldman expects motor premiums to start rising again in 2014 after a few years of downward price pressure.
AFRICAN BARRICK GOLD
HSBC has upgraded the gold miner from “underweight” to “neutral” and increased its target from 160p to 230p, having downgraded the stock on 22 January. The broker is cheered by ABG’s commitment to cost-cutting.