BEST of the BROKERS
BT GROUP
Following fourth quarter results, Espirito Santo has upgraded the telecom group from “sell” to :neutral” and ups its target price from 180p to 210p. The broker sees opportunities for cost cutting that should help reduce pressure on revenue and help Ebitda growth for 2012-13. It also expects BT Retail to be able to sustain its outperformance.
MAN GROUP
Numis has downgraded the asset manager from “hold” to “sell” with a target price of 64p, saying it expects the group’s flagship AHL fund will continue to struggle and that there is little management can do to change this. The broker says it now believes that Man is worth no more than its liquidation value, which it estimates as between 50-70p per share.
LONMIN
UBS has maintained its “sell” rating on the platinum miner but dropped its target price from 710p to 700p after a disappointing first half of the year that saw the company lose $14m. The broker has lowered its earnings per share forecast for the full year by 25 per cent, and says that if weak pricing continues to hit Lonmin it will be forced to reevaluate its spending plans.