BEST OF THE BROKERS
TESCO
JP Morgan said that 2009/10 will be a year of two halves for Tesco in terms of like-for-like growth, margin development and competition. The broker reiterated its “underweight” rating and 335p target price, saying that the chain remains a company with great assets and management track record but that it faces challenges.
GAME GROUP
Game’s current trading is likely to be weak, said Deutsche Bank ahead of the firm’s first half results. The broker downgraded the stock to “hold”, with a price target of 195p, saying there is limited upside to that target. But the analysts added that there is room for improvement due to the hardware demand being boosted by price cuts.
HOCHSCHILD MINING
Goldman Sachs initiated coverage of Hochschild with a “buy” rating and a 12-month price target of 425p. The broker expects volume growth from equity mines in 2012, plus associate ventures and a rising silver price to drive increased earnings and cashflows, and does not believe that this is factored into the share price.