BEST OF THE BROKERS
MOTHERCARE
Noble initiated coverage on Mothercare with a “neutral” rating and a 600p target price, saying the stock offers one of the best longer-term growth stories in the retail sector. In the short-term, the broker thinks that synergies from the Early Learning Centre and property restructuring benefits will help to withstand macro headwinds.
CARNIVAL
Charles Stanley upgraded Carnival to “buy” from “hold” after its better-than-expected third-quarter results, saying that its valuation looks undemanding for the trough of the earnings cycle. The broker said it considers this recommendation as relatively high-risk, given the high level of operational gearing within the cruise operator’s business.
SAB MILLER
JP Morgan slightly revised its medium-term guidance for SAB Miller’s Africa and Asia businesses, saying that, taken together, the division is expected to deliver low double digit revenue growth with margin progress dependent on country mix. The broker retained its “neutral” stance on the stock but upgraded its price target by four per cent to 1,400p.