BEST of the BROKERS
FRESNILLO
Citigroup has downgraded the miner to “sell” with a target price of £13.05. The broker thinks Fresnillo is trading at an unjustified “substantial premium” to its peers. While the bull market in silver could buoy the shares in the short term, Citi reckons a drop in silver below $30 an ounce could spark a sell-off.
DIAGEO
Morgan Stanley rates the drinks firm “overweight” and has a target price of £17.25. Diageo is successfully improving margins in Asia, the broker reckons, and could deliver double-digit top line growth in the region. Further avenues for growth lie in Latin America and Africa, Morgan Stanley adds.
HSBC
JP Morgan Cazenove remains “overweight” on the bank following its first quarter results, and has a target price of 650p. HSBC posted strong results, the broker said as it raised its pre-tax profit forecasts for the next two years by one per cent. Cost control was also better than expected.