BEST OF THE BROKERS
ITV
Credit Suisse rates the media firm “outperform” with a target price of 100p. The broker has trimmed it ad sales growth forecasts to two per cent, down from 4.4 per cent, owing to gloomier macro conditions expected towards the end of the year. However, Credit Suisse still expects to see £230m underlying earnings for the first half of the year – a rise of 40 per cent on last year – thanks to a relatively expensive 2010 when ITV showed the World Cup.
SAFESTORE
Citigroup rate the storage company “buy / medium risk” with a target price of 185p. The broker thinks the firm has enjoyed a solid six months, but is now experiencing turbulence as customers scale back purchases on the back of economic uncertainty. Citi has trimmed its earnings per share forecast by three per cent to 8.6p for this year, but retains its “buy” rating and says that the firm could be re-rated if it converts to a real estate investment trust.
STAGECOACH
Nomura rates the transport group “buy” with a target price of 275p. The broker expects a good end to the year, with seven per cent earnings per share growth driven mainly by strong US growth. Nomura notes that Stagecoach is enjoying a boost in passenger numbers on the back of rising motoring costs, and that an imminent round of rail refranchising provides further opportunities for growth.