BEST OF THE BROKERS
RWS HOLDINGS
Numis has upgraded the intellectual property support service provider from “add” to “buy” and increases its target price on the stock from 534p to 565p, after the company reported trading in its first quarter has been in line with expectations. The broker sees RWS as a highly attractive business, with solid top line growth, a good track record in acquisitions, and strong cash generation. Numis leaves its profits before tax and earnings forecasts unchanged.
HOMESERVE
N+1 Brewin has moved its rating on the emergency home repairs and insurance firm from “reduce” to “hold” and reduces its target price from 275p to 260p following an interim management statement last week, which prompted another downgrade to estimates and flagged potential exceptional costs. The broker says the shares are fairly valued given longer-term growth opportunities, but says uncertain UK conditions could trigger further shocks.
FAROE PETROLEUM
Seymour Pierce has initiated coverage on several Aim-listed oil and gas firms including the Atlantic Margin-focused Faroe Petroleum, which it rates as a “buy” with a target price of 306p. The broker says Faroe has a robust mix of production growth and high impact exploration, plus a strong balance sheet to fund planned drilling, appraisals and development. The company’s review of its Norwegian assets is also expected to boost long-term production.