Best of the Brokers for 05 February 2014
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SERCO
Cantor Fitzgerald has kept its “sell” rating and slashed its target from 460p to 365p in the wake of the outsourcing group’s profit warning last week. Despite the firm’s repaired relationship with the government, the broker is worried that management changes will create more instability.
BBA AVIATION
Morgan Stanley has raised its rating on the jet renter from “equalweight” to “overweight” and hiked its target from 315p to 365p. The broker believes BBA shares have been underperforming the market despite growth in plane rental in the US.
PORSCHE
Berenberg has started covering the car firm with a “buy” rating and a target of €100. The broker thinks that despite lingering legal issues at Porsche, the company’s shares will be driven higher by its 32 per cent stake in Volkswagen in the coming years.