BEST OF THE BROKERS
MARSTON’S
KBC Peel Hunt highlights Marston’s as the only pub company that has maintained its dividend, but also not chosen to raises new equity. The analysts argue that management has demonstrated its commitment to moving cash in the right direction, and argue the shares current level offers a buying opportunity. Ups target price to 200p.
AVEVA
Investec says “buy” Aveva, arguing that credibility is slowly improving for the engineering software company. The broker believes it is time to move the debate on, from estimating trough earnings, to determining if 2011 earnings will show growth. The analysts argue that 2011 will show profit growth and raise their target price to 750p.
DANONE
Citigroup analysts recommend investors “hold” Danone, on the back of its rights issue announcement. The broker is awaiting clarity on the rights issue details and is concerned that the company’s plans for geographical expansion will mean that the cost of the “new” Danone model is likely to be higher than that to which investors have become accustomed.