BEST OF THE BROKERS
NATIONAL GRID
Standard & Poor’s Equity Research (S&P) believes National Grid has delivered a strong operational and financial performance and gives it a “hold” rating. S&P said in the first quarter of 2011, US gas distribution volumes increased by 1.5 per cent and electricity was up 1.3 per cent, but UK gas volumes fell by 4.6 per cent.
PEARSON
JP Morgan Cazenove has given Pearson a “neutral” rating but said that the group delivered reassuring half year results. JP Morgan said that all divisions delivered underlying revenue and profit growth in the first half of 2010. But JP Morgan remain slightly cautious about growth in 2011 due to government spending cuts.
UNILEVER
In the first quarter Unilever benefited from benign raw materials, according to Citigroup and hence reinvested the benefit into pricing, which drove volumes. Citi has given Unilever a “buy” rating and said that the operating leverage delivered strong margin progression. Citi expects a similar result in the second quarter.