BEST OF THE BROKERS
NESTLE
Nomura rates the company “reduce” and has a target price of CHF49 (£35.83). The broker notes that the company is the best in class as it seeks to develop close relationships with farmers and superior options to many food manufacturers in terms of procurement. However, Nomura thinks Nestle needs to plan for the long-long term and will require increased investment.
J SAINSBURY
UBS rates the supermarket a “buy” and has a target price of 440p. The broker expects growth in like-for-like sales including fuel to remain robust when the firm reports quarterly figures on 15 June, thanks to the bank holidays and recent good weather, but warns that underlying trading conditions remain tough. Rising fuel price is the biggest single factor contributing to an overall slowdown in the UK grocery sector, it adds.
ROCHE
Goldman Sachs rates the healthcare company a “buy” and has added the group to its conviction buy list with a target price of CHF185 (£135.27). The broker sees potential for an exciting pipeline as Roche shifts economics within its portfolio, though market competitors are finding it hard to make meaningful inroads. The broker’s recent meeting with management has convinced it of real potential for sustainable revenue growth.