BEST OF THE BROKERS
LLOYDS BANKING GROUP
Credit Suisse has given Lloyds Banking Group an “outperform” rating. It upgraded forecasts for the bank last month after flagging that sustained low interest rates would allow for a £4bn increase in mortgage revenues over the next three years. Base rate expectations have since fallen to record lows, notes Credit Suisse.
RESOLUTION
Citigroup has cut its price target for Resolution to 87p from 121p to reflect the value dilution and deal execution risks. Citi, which has given Resolution a “buy” rating however has raised its estimates to reflect market movements and the latest announcement that Resolution has agreed to purchase part of AXA’s UK life unit.
DAIMLER
JP Morgan Cazenove maintains an “overweight” rating for Daimler for a few reasons. It says street estimates look about 10 per cent too low, a weaker Mercedes product cycle in 2011 should not derail group earnings before interest, taxes margin momentum is strong and valuation remains compelling.