BEST OF THE BROKERS
BARCLAYS
Deutsche Bank rates the bank “buy” with a target price of 386p. The broker notes that Barclays was keen to stress its flexibility in the face of regulatory shifts at a recent investor day, forecasting a 15 per cent return on equity for BarCap in 2013 even if revenues are subdued by rule changes. Deutsche Bank says it was reassured over the outlook for what it sees as a very discounted stock, currently trading at 5.8 times 2012 earnings.
SHIRE
Goldman Sachs rates the healthcare firm “buy” with a target price of £23. The broker sees an opportunity for the group in ADHD medication, following data showing 12 per cent US market growth in the last month. Goldman’s growth predictions for the firm in this sector are 12 to 27 per cent of consensus estimates. The broker sees the key risks for Shire as large-scale M&A and manufacturing disruption.
SAINSBURY
Nomura rates the supermarket “neutral” with a lowered target price of 340p. The broker sees Sainsbury as performing better than Tesco, helped by the firm’s exposure to non-food sales. However, Nomura thinks the grocer needs to accelerate growth if it is to hit its like-for-like forecasts of two per cent this year – though it believes its shares will consolidate at the current price range.