BEST of the BROKERS
ARM HOLDINGS
Morgan Stanley rates the semi-conducter and software design company as “overweight” with a target price of 690p. The broker thinks ARM can deliver on its ambitious long-term targets, and forecasts royalty revenue growth of seven per cent above and beyond the sector. Morgan Stanley thinks ARM could reach a market share of up to 70 per cent in mobile processing by 2016 under its most bullish forecasts.
HOMESERVE
Panmure Gordon has a “sell” rating on the home repairs group with a target price of 145p. The broker struggles to see any chance of share price improvement until an ongoing FSA probe has concluded. It is also worried that problems in the UK could dent Homeserve’s international ambitions, despite good progress in Europe.
BETFAIR
Numis has a “buy” rating on the betting firm with a target price of £11. The broker reckons some of Betfair’s investments are likely to pay off soon, such as its integrated sportsbook once the Euro 2012 competition kicks off. It also points out Betfair’s market-leading odds and its impressive advances in the mobile market. But Numis has trimmed its earnings per share by three per cent this year and 16 per cent next year due to increased costs and marketing spending.