BEST OF THE BROKERS
RECKITT BENCKISER
Morgan Stanley analysts reiterated their “overweight” stance on Reckitt Benckiser, the UK consumer goods producer, stating fundamentals remain strong and the share price is attractive. They said Reckitt is now trading at the cheapest multiples – around 13.7x PE – seen since Reckitt & Coleman and Benckiser merged in December 1999.
CARPHONE WAREHOUSE
RBS raised its forecasts for Carphone Warehouse, following the mobile-phone retailer’s acquisition of broadband provider Tiscali, by 15 per cent for 2010 earnings per share. Analysts said Carphone now has as many subscribers in the UK as BT, which gives it far more leverage in negotiating access to BT’s planned fibre-optic network. RBS upped its rating to “buy” from “hold”.
LLOYDS BANKING GROUP
UBS analysts kept their “buy” rating on Lloyds Banking Group, the bailed-out lender, saying it remains a key European recovery pick. They said its now strong capitalisation ensures it can withstand more stress than peers. And its participation in the government’s asset insurance scheme ensures the assets are likely to show a faster recovery than at other firms.